S&P futures were positioned close to the flatline on Friday in anticipation of significant inflation data. Market participants assessed the dynamics of the artificial intelligence sector in conjunction with the recent tariff threats issued by President Donald Trump. S&P 500 futures increased by 0.1%, mirroring the performance of Nasdaq 100 futures. Futures associated with the Dow Jones Industrial Average increased by 74 points, representing a 0.2% rise.

In the premarket, Costco shares experienced a decline of nearly 1% following the retailer’s report of a slowdown in same-store sales for the second consecutive quarter. The company’s fourth-quarter earnings and revenue exceeded analyst expectations, however. Investors are anticipating the publication of August’s personal consumption expenditures price index at 8:30 a.m., given that this release is recognized as the Federal Reserve’s favored gauge of inflation. Analysts anticipate that the report will indicate a rise in inflation, while market participants are factoring in two quarter-point rate reductions at the Federal Reserve’s forthcoming meetings, consistent with the central bank’s forecasts. The outcome may influence market reactions; however, the release of robust jobs data on Thursday, along with a significant upward revision in second-quarter gross domestic product to 3.8%, has somewhat tempered bullish sentiment.

Investors are concerned that a decline in jobless claims may indicate a robust economy, potentially reducing the Federal Reserve’s incentive to lower interest rates. Prominent entities in the artificial intelligence sector, specifically Oracle, Meta, and Tesla, experienced a decline on Thursday. Investors have been monitoring the stock closely, viewing it as a gauge for the AI sector. For the week, the software giant has experienced a decline of 5.6%. Week to date, the S&P 500 has experienced a decline of nearly 0.9%. The tech-heavy Nasdaq Composite has experienced a decline of approximately 1.1%, whereas the Dow Jones Industrial Average has decreased by 0.8%.

Equities may encounter additional strain due to a series of tariffs indicated by Trump. In a post, he stated that the U.S. would implement a 100% tariff on “any branded or patented Pharmaceutical Product.” He added that this measure will not apply to companies constructing drug manufacturing facilities in the U.S. Trump also stated that imported heavy trucks will incur a 25% levy starting on October 1. Shares of truck manufacturer Paccar experienced a 6% increase following the president’s announcement.