Dow, S&P 500, Nasdaq futures rise amid in-line inflation print, while tariff

US stock futures edged higher on Friday in the wait for a key inflation reading as fresh tariff threats added to uncertainty over Big Tech prospects.

Contracts on the S&P 500 (^GSPC) rose 0.4%, and the tech-heavy Nasdaq 100 (NQ=F) was up about 0.2% after suffering an Nvidia-led (NVDA) sell-off on Thursday. Dow Jones Industrial Average futures (YM=F) also added 0.5%.

The January reading of Personal Consumption Expenditures index did its part to soothe some anxiety after recent data revived concerns about a slowdown in the economy and uptick in inflation. Annual “core” PCE — which strips out food and energy prices and is the Federal Reserve’s preferred gauge of inflation — cooled to 2.6%, matching expectations.

Meanwhile, investors reeling from President Trump’s fast-paced trade policy overhaul had to grapple with fresh tensions after China vowed to respond with “all necessary measures.” Beijing’s threat came after Trump said an extra 10% tariff on Chinese imports would take hold on Tuesday. He has also pledged to follow through on new duties on Mexico and Canada, and to impose tariffs on the EU.

Markets are heading into the last trading day of February facing sharp weekly and monthly losses after suffering the buffets of tariff moves. The Nasdaq Composite (^IXIC) is on track to fall over 5% in February, while the S&P 500 (^GSPC) and Dow (^DJI) are eyeing drops of around 3%. Meanwhile, the benchmark S&P has seen daily drops of over 1% on three trading days this week.

The sell-off in bitcoin (BTC-USD) deepened as the token sank 7% to its lowest level since November. The cryptocurrency has dropped 25% from its record high amid a broader crypto rout.

On the earnings front, Dell’s (DELL) stock slipped 2% as its results late Thursday fanned concerns about higher AI server costs. Shares in hardware maker HP (HPQ) dropped 3% even as its earnings met expectations.

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