S&P Futures experienced an uptick Friday night in anticipation of significant economic data and a potentially pivotal ruling from the Supreme Court regarding President Donald Trump’s tariffs. Futures associated with the Dow Jones Industrial Average increased by 63 points, representing a 0.13% rise. S&P 500 futures increased by 0.25%, while Nasdaq 100 futures saw a rise of 0.26%. On Friday morning, traders will receive an update regarding the economic landscape, as the gross domestic product report for the fourth quarter is set to be released. Economists anticipate a 2.5% increase in real GDP. The 4.4% increase in the third quarter significantly exceeded projections. The report on the personal consumption expenditures price index, which serves as the Federal Reserve’s favored measure of inflation, is also forthcoming. The headline reading is anticipated to reflect a 2.8% increase on a year-over-year basis, as indicated by economists surveyed by Dow Jones. The core PCE, excluding the more volatile components of food and energy, is anticipated to have increased by 3% compared to the previous 12 months.

Federal Reserve policymakers exhibit a division in their perspectives, with some officials expressing concern over the need to bolster the labor market, while others prioritize the issue of inflation. The rate of price escalations has predominantly exhibited a downward trajectory; however, inflation continues to surpass the central bank’s 2% target. Minutes from the January Federal Reserve meeting reveal that certain officials require further evidence of a decline in inflation prior to supporting any further reductions in interest rates. Friday is poised to deliver a significant Supreme Court decision, with many analysts anticipating a ruling regarding the legality of Trump’s tariffs as they pertain to the International Emergency Economic Powers Act. Market participants largely anticipate a favorable response from the stock market should the tariffs be reduced, despite the expectation that the White House may employ alternative methods to reinstate them in the future.

The Supreme Court, which refrains from disclosing in advance the cases it will adjudicate, has also earmarked decision days for the upcoming Tuesday and Wednesday. “We think the market is treading water right now waiting for its next catalyst,” stated Paul Stanley. He anticipates that the Supreme Court ruling, in conjunction with Nvidia’s earnings results next week, could have significant implications for the market in the near term. “The fact that the S&P 500 is flat this year, but the Nasdaq is down so far this year, suggests that the market’s broadening is alive and well, which is encouraging for investors,” he added. The S&P 500 experienced a decline of nearly 0.3% on Thursday, resulting in minimal change for the broad-market index year-to-date. The Nasdaq Composite declined by 0.3% during the regular session, whereas the Dow Jones Industrial Average experienced a decrease of 267 points, equating to a 0.5% loss.

Tensions escalated between the United States and Iran following Trump’s announcement regarding his decision on potential military strikes within the forthcoming ten days. Oil prices experienced an uptick amid concerns regarding a potential attack. Week to date, the S&P 500 is showing a slight increase, rising by 0.4%. The tech-heavy Nasdaq appears poised to end a five-week losing streak, having risen by 0.6% as of Thursday. The Dow is poised to record a 0.2% decline during this period.