Specifically:
- Dow futures were around 46,496 points, down slightly by 20 points (-0.04%) early morning.
- S&P 500 and Nasdaq 100 futures stayed close to flat with very minor movements.
- These steady futures came after a strong rally on Thursday when all three indexes hit fresh all-time closing highs.
The market optimism was fueled by expectations of progress in US-China trade talks, especially over TikTok, despite some caution as Trump indicated a possible extension of the current tariff truce rather than a comprehensive trade deal. Additionally, FedEx reported better-than-expected earnings, bucking tariff pessimism, and supporting market sentiment.
Meanwhile, broader economic conditions showed challenges such as a weak US housing market, but investor focus remains on potential easing of monetary policy and AI sector gains contributing to market strength.
Intel stock surged over 22% on Thursday after Nvidia announced it will invest $5 billion to buy Intel common stock at $23.28 per share, making Nvidia one of Intel’s largest shareholders with a roughly 4% stake. This investment comes as part of a collaboration to develop custom data center and personal computing products integrating Nvidia’s AI and accelerated computing technologies with Intel’s CPUs and x86 ecosystem. The partnership aims to create x86 CPUs tailored for Nvidia’s AI infrastructure and new PCs powered by Intel CPUs combined with Nvidia RTX GPU chiplets.
Despite the rally on Thursday, Intel’s stock fell about 2% in premarket trading on Friday after the big surge.
Synopsys shares also declined slightly after a 12% gain on Thursday linked to the news.
Lennar stock dropped 2% premarket following a weak quarterly profit report and disappointing home delivery forecasts amid high inflation and affordability pressures.
The Nvidia-Intel partnership marks a significant shift, with Nvidia supporting Intel’s turnaround as it struggles against competitors in the AI and chip markets. It comes after the U.S. government took a 10% stake in Intel recently, signifying strong institutional backing for Intel’s role in the U.S. semiconductor industry.
Trump sets high expectations
Trump struck an optimistic tone ahead of the call, suggesting a broader U.S.-China trade deal may be within reach.
“On a much bigger scale, we’re pretty close to a deal,” the president said.
Still, he hinted the U.S. might extend the current tariff truce rather than secure a comprehensive agreement, noting the existing pause carried “pretty good terms.”
FedEx earnings
Shares of FedEx (FDX) jumped in premarket trading after the company reported quarterly revenue and profit above Wall Street estimates. Analysts had expected weaker results following the end of duty-free “de minimis” exemptions on lower-value imports, but FedEx bucked the trend.
FedEx shares rose over 5% in premarket trading after beating earnings expectations, while Intel fell about 2% following a big rally from Nvidia’s announced investment.
Housing stocks gain from Fed rate cuts
The Federal Reserve’s recent rate cut continues to support housing-related equities. The PHLX Housing Index (^HGX) is up more than 16% this quarter, outpacing the broader S&P 500’s 7% rise. Builders including DR Horton (+30%), KB Home (+20%), and Toll Brothers (+20%) have led the gains. Retailers like Lowe’s (+21%) and Home Depot (+14%) have also benefited.
Still, U.S. housing data shows weakness: single-family homebuilding fell to a 2½-year low in August. Fed Chair Jerome Powell acknowledged the sector remains “weak,” but analysts say mortgage rates falling into the 5% range could help spur a rebound.
Consumer spending split shows economic divide
Separately, American Express (AXP) unveiled a revamped Platinum credit card with expanded travel and dining benefits, but with a steep $895 annual fee. The move highlights what economists call the “credit card perk wars” and underscores how wealthy consumers continue to drive spending growth while much of the population struggles to keep up with inflation.
Intel, Synopsys, Lennar lead early movers
U.S. stock futures traded flat Friday morning, but several individual names were active in premarket trading ahead of the Trump–Xi call on trade. Here are some of the top trending tickers:
Intel (INTC)
Intel shares slipped 0.5% to $30.42 in premarket trading after a massive 22% surge Thursday, when Nvidia (NVDA) confirmed a $5 billion investment in the chipmaker. The move sparked optimism around a potential strategic partnership in semiconductors, but profit-taking appears to be weighing on shares this morning.
Synopsys (SNPS)
Chip design software maker Synopsys was down 1% premarket after a 12% rally on Thursday, fueled by enthusiasm over the Nvidia–Intel tie-up. Investors had bid up the stock on speculation of stronger semiconductor design demand, but momentum cooled into Friday.
Lennar (LEN)
Homebuilder Lennar sank 2% before the bell after reporting a 46% year-over-year drop in third-quarter profit and issuing a weaker forecast for fourth-quarter home deliveries. The company cited high inflation and affordability pressures as major headwinds for U.S. housing demand.
Gold (GC=F)
Gold futures extended losses for a third straight day, trading at $3,685.80/oz, about $70 below Wednesday’s record high. Prices had spiked earlier in the week following the Fed’s 25-basis-point rate cut, but have since retreated after Chair Jerome Powell emphasized a “meeting-by-meeting” approach to further easing. A stronger U.S. dollar has also pressured bullion.
What are expert predictions for US stock futures this week
Expert predictions for US stock futures this week highlight cautious optimism with expectations for continued strength, largely driven by the Federal Reserve’s recent rate cut and optimism around AI-linked stocks. The major indexes—the Dow Jones, S&P 500, and Nasdaq—are expected to maintain their record highs or see modest gains, supported by potential further monetary easing and upbeat earnings reports such as FedEx’s recent strong quarterly results.
Economists note that while September is traditionally a volatile and challenging month for equities, this year markets have defied that trend so far. Investors remain watchful of key geopolitical events, including a US-China trade discussion involving TikTok, as well as the effects of triple witching (options and futures expiration).
Mohit Kumar, an economist at Jefferies, mentioned that any signs of economic weakness are being offset by the expectation of more Fed easing. The small-cap Russell 2000 is also seen as a key focus, having reached a new high recently, signaling optimism for smaller firms amid rate cut hopes.
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