Around 5:30 a.m. ET, Dow futures indicated a positive open of about 250 points. Futures on the S&P and Nasdaq were also both solidly higher.
Wall Street closed Thursday’s session on a more positive note, erasing some of the steep losses suffered earlier in the week. Market sentiment remains volatile, however, as concerns about the softening global economy and U.S.-China trade talks kept investors on edge.
Investor sentiment turned more negative when the U.S. Treasury yield curve inverted — a market phenomenon often considered a recession indicator. An inverted yield curve marks a point where short-term investments in U.S. Treasury bonds pay more than benchmark long-term bonds. The U.S. 30-year Treasury yield dropped to a record low on Thursday, while the yield on the benchmark 10-year notes dipped to a three-year low, as investors sought out safe-haven assets.
Speaking to CNBC in Asia, Ray Dalio, founder of the world’s largest hedge fund, said that there’s a 40% chance that the U.S. will experience a recession before the 2020 election.
Meanwhile, President Donald Trump said Thursday that he believed the U.S.-China trade dispute would be relatively short, adding China wanted to make a trade deal. His comments came after Beijing promised it would counter the latest tariffs on $300 billion of Chinese goods but urged the U.S. to meet halfway in order to secure an agreement.
On the data front, a reading on housing starts and building permits is due at 8:30 a.m. ET. Consumer sentiment numbers will be released at 10 a.m. ET. And OPEC is also expected to publish its monthly report.