Stock futures moved modestly higher early Friday morning as Wall Street looked to build off a strong close in afternoon trading.
Futures contracts tied to the Dow Jones Industrial Average rose about 133 points, or 0.1%. Those for the S&P 500 and the Nasdaq 100 also traded in positive territory.
The move in futures comes after stocks bounced in afternoon trading on Thursday, with the Dow swinging more than 500 points as cyclical trades gained steam. The strong close broke a recent trend of poor finishes on Wall Street and trimmed the market’s week-to-date losses. The Dow and S&P 500 are now down less than 0.1% for the week, while the Nasdaq Composite is in the red by 1.8%.
“If you’re positioned the way we are, which is for a cyclical recovery and being overweight the value sectors, certainly you can’t run a victory lap here. But it is nice to see, after the last six days, that some of the trends that have been in place for the better part of six months seem to be reasserting themselves,” Jason Trennert, CEO of Strategas Research Partners, said on CNBC’s “Closing Bell.”
Futures were boosted by bank stocks, which rose after the Fed announced that banks could resume buybacks and raise dividends starting at the end of June. The central bank originally said it would lift pandemic era restrictions in the first quarter, but even the delayed move gives investors more clarity.
“The banking system continues to be a source of strength and returning to our normal framework after this year’s stress test will preserve that strength,” Vice Chair for Supervision Randal Quarles said in a statement.
Shares of JPMorgan and Citigroup rose slightly in extended trading, along with other major banks.
On the economic data front, investors will get another look at inflation possibilities on Friday, with reports due for personal income and consumption expenditures in February.
