Markets Await GDP, Tariff Verdict

Stock futures experienced minimal shifts on Thursday night as the market braced for significant economic data releases and a pivotal Supreme Court decision. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all saw slight declines, indicating a market in wait-and-see mode.

Investors are keenly awaiting the release of the gross domestic product (GDP) report for the fourth quarter, with economists predicting a 2.5% annual gain. Alongside this, the personal consumption expenditures (PCE) price index, the Federal Reserve's favored inflation metric, will be disclosed. The core PCE is anticipated to show a 3% increase over the previous 12 months, while the headline reading is expected to advance 2.8% year-over-year.

A significant development traders are watching for is a potential Supreme Court ruling on the legality of President Trump's tariffs. Many anticipate a positive market reaction should the duties be invalidated, though the possibility of their reapplication through other means exists. The Court has additional decision days scheduled for next week, adding to the uncertainty.

Market sentiment is currently described as treading water, with key events like the Supreme Court ruling and Nvidia's upcoming earnings results expected to provide short-term catalysts. Despite recent minor losses, the S&P 500 has remained largely flat year-to-date, and the Nasdaq is showing signs of broadening market participation. Separately, escalating tensions between the U.S. and Iran have led to a rise in oil prices.