Nasdaq Futures Slip As Fiscal Worries Weigh, But Strategists Pin Hope On Trump’s Tax Relief

U.S. stock futures flatlined early Friday, continuing the trend seen in the previous session. A modicum of progress in U.S.-China relations may offer some encouragement to traders, although fiscal worries are expected to temper the optimism. 

As of 2:07 a.m., ET on Friday, the S&P 500 and Dow futures edged down 0.06% and 0.02%, while the Nasdaq 100 futures fell 0.14%.

The Russell 2000 Index was up 0.02%.

Oil extended its slide, with West Texas Intermediate grade crude down about 0.70% early Friday as supply concerns waned. Safe-haven gold is up moderately, and the U.S. dollar is lower.

The 10-year U.S. Treasury note continued to edge down after Wednesday’s surge, but held above the 4.5% mark.

Asian stocks traded on a mixed note on Friday.

The economic calendar for the day is fairly light, with speeches by a few Federal Reserve officials and the Commerce Department’s April new home sales report on tap.

Kansas City Fed Jeff Schmid and St. Louis Fed Alberto Musalem will participate in a panel discussion at 9:35 a.m., while Fed Governor Lisa Cook is scheduled to speak at 12 p.m. ET. 

Booz Allen Hamilton (BAH), Buckle (BKE), and Frontline (FRO) are among the companies reporting their earnings on Friday.

Stocks showed some degree of volatility on Thursday as traders reacted to a batch of economic data and the House passing President Donald Trump’s ‘one big beautiful’ tax bill, which is expected to push up the already bloated deficits.

An economist, however, sounded a positive note. WisdomTree Senior Economist Jeremy Siegel said the market’s resilience, coupled with the artificial intelligence (AI) momentum and geopolitical wins, makes him more optimistic than he was a month ago. 

“While tariffs remain a headwind, the tax cut and a potential easing of tensions in the Middle East could propel equities closer to all-time highs,” the economist said.

Fund manager Louis Navallier held a similar view about Trump’s tax bill. “The new tax bill is expected to eliminate taxes on Social Security benefits, tips and overtime, which will be a big windfall for many Americans,” he said.

He sees the middle-class tax relief as a way to raise the “velocity of money” and stimulate economic growth.

The Invesco QQQ Trust (QQQ) ETF gained 0.19% on Thursday, while the SPDR S&P 500 ETF (SPY) and SPDR Dow Jones Industrial Average ETF Trust (DIA) edged up 0.04% and 0.02%, respectively.

The iShares Russell 2000 ETF (IWM) ended little changed, with a negative bias.

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Read Next: US-China Relations Thaw Slightly As Both Sides Confirm More Talks, Pledge To Keep Communication Lines Open

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