U.S. shares opened lower on Friday, with futures for the S&P 500 down 0.4% and Dow Jones Industrial Average Futures dipping 0.3%, the Associated Press reports.
Traders’ confidence about the chances of further interest rate cuts by the Federal Reserve is weakening given recent data showing unexpected strength in the U.S. economy. Minutes from a Dec. 17–18 meeting released this week showed Fed officials expect to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs increases under President-elect Donald Trump and other potential policy changes. Uncertainties over how aggressively Trump might pursue higher tariffs against China and other countries once he takes office have left investors cautious just days ahead of the Jan. 20 inauguration.
The bond market remained open Thursday until its recommended closure at midday. Yields held relatively steady following a strong recent run that has rattled the stock market. The yield on the 10-year Treasury was sitting at 4.69% after topping 4.70% the day before, when it neared its highest level since April. It was below 3.65% in September.
In other dealings early Friday, U.S. benchmark crude oil rose $1.12 to $75.04 per barrel. Brent crude, the international standard, rose $1.14 to $78.06 per barrel.
The U.S. dollar fell to 157.68 Japanese yen from 158.14 yen.
