US stock futures moved higher on Friday, with technology stocks again driving gains as Wall Street sought to extend a rebound after a week marked by volatility, strong bank earnings, and geopolitical concerns.
Nasdaq 100 futures advanced approximately 0.4%, while S&P 500 futures added 0.2%. Dow Jones Industrial Average futures, which include fewer technology companies, traded near flat after stocks ended a two-day decline on Thursday.
Markets anticipated further strength from TSMC and Nvidia, partly supported by a US-Taiwan trade agreement expected to provide a $250 billion boost to American semiconductor and technology manufacturing. TSMC shares surged Thursday following a robust quarterly report that reignited enthusiasm for artificial intelligence, lifting related stocks.
Friday's earnings schedule featured smaller banks like PNC and Regions Financial, coming after a week of positive reports from major Wall Street firms. Shares of Goldman Sachs and Morgan Stanley rose Thursday after posting profit increases, providing support to financial stocks.
The trading week saw sharp turns, influenced by escalating tensions with Iran, a dispute over Greenland, and a criminal probe threatening Federal Reserve independence, with President Trump involved in these events. Investors face a long weekend to assess developments, as US stock and bond markets will be closed Monday for Martin Luther King Jr. Day.
Oil prices increased, recovering some recent losses that stemmed from fears of a US military strike on Iran. Brent crude futures traded above $64 per barrel, and West Texas Intermediate futures approached $60, both poised to end a turbulent week with modest gains.
Silver prices declined as the threat of US tariffs diminished, though the metal remained up more than 15% for the week after a sustained rally in precious metals.
Despite Thursday's advance, major indexes were on track to close the week lower amid Wall Street's first period of volatility this year. The S&P 500 was down about 0.3% for the week, the Nasdaq Composite was off roughly 0.6%, and the Dow was slightly lower.
In premarket trading, State Street stock fell over 2% after reporting fourth-quarter results. The asset manager and custody bank posted revenue of $3.7 billion, exceeding analyst expectations, but net income declined 5% year-over-year, and earnings per share missed estimates due partly to a repositioning charge.
PNC Financial stock rose 3% before the bell after reporting fourth-quarter earnings per share of $4.88, beating estimates, and revenue of $6.1 billion, also above consensus.
Micron shares gained 6% in premarket activity following news that former TSMC co-CEO Mark Liu purchased Micron stock. J.B. Hunt Transport Services stock fell 5% after reporting lower quarterly revenue, citing a decline in cross-country shipments. Coupang stock rose 4% ahead of the opening bell.
Morgan Stanley outlined a bullish case for ASML, suggesting the stock could rally 70% in an optimistic scenario as chipmakers increase spending to meet rising AI demand.
Nvidia continues to face challenges in China despite President Trump allowing sales of advanced H200 chips to Beijing, with geopolitical hurdles potentially harming its competitive edge.
Canada and China reached a deal for Beijing to cut tariffs on Canadian canola by March 1, while Canada agreed to reduce tariffs on Chinese electric vehicles, signaling a thaw in trade relations and a potential divergence from US policy.
The 10-year Treasury note yield is headed for a fifth consecutive week of minimal change, matching its longest period of inertia in two decades, a trend causing anxiety among bond investors as previous tight ranges have preceded selloffs.
Oil prices fell in Asian trading Friday, extending losses after concerns about supply risks eased as the likelihood of a US strike on Iran receded, though Brent prices remained set for a fourth weekly gain.
Elon Musk's lawsuit against OpenAI and Microsoft is set to proceed to trial.