US Stock Futures Mixed as Fed Rate-Cut Hopes Cool and Retail Sales Data Looms
Dow futures rise on Berkshire’s UnitedHealth stake, Intel jumps on US investment talks, while Applied Materials slumps on weak guidance. Investors await key July retail sales report for market direction.
US stock futures traded mixed on Friday as Wall Street watched July retail sales and reassessed Fed rate-cut chances. UnitedHealth surged on Berkshire’s stake, Intel gained on potential US funding, and Applied Materials tumbled on soft forecasts.
Wall Street Awaits Retail Sales Report Amid Cooling Rate-Cut Hopes
US stock futures were mixed in early Friday trading as investors cautiously awaited the release of July’s retail sales report — a key indicator for gauging consumer spending strength in the US economy.
- Dow Jones Industrial Average (YM=F): +0.7%
- S&P 500 Futures (ES=F): Flat
- Nasdaq 100 Futures (NQ=F): Slightly below flatline
The cautious sentiment follows Thursday’s market wobble, which ended a two-day rally driven by hopes of a September interest rate cut. Those hopes cooled after the Producer Price Index (PPI) for July came in hotter than expected, suggesting persistent inflation pressures.
Stock Highlights Driving Pre-Market Moves
UnitedHealth (UNH) Surges
Shares of UnitedHealth climbed sharply after a regulatory filing revealed Warren Buffett’s Berkshire Hathaway purchased 5 million shares in the healthcare giant. This investment is seen as a strong vote of confidence in the sector’s long-term growth potential.
Intel (INTC) Jumps
Intel gained in pre-market trading after reports that the US government is considering taking a stake in the company. The news comes days after President Trump met with Intel’s CEO to discuss strategic semiconductor manufacturing initiatives — signaling potential policy support for domestic chip production.
Applied Materials (AMAT) Tumbles
Applied Materials plunged 14% after issuing weak fourth-quarter guidance, citing sluggish demand from China and heightened risks from ongoing tariff concerns. The disappointing forecast has raised fresh worries about the semiconductor supply chain’s near-term health.
Macroeconomic Backdrop and Fed Policy Outlook
Market focus is now firmly on upcoming July retail sales data, which could influence the Federal Reserve’s next policy decision. While a September rate cut is still anticipated by many traders, hotter-than-expected inflation data this week has led to speculation that the cut may be smaller than initially hoped.
The Fed has signaled it will remain data-dependent, meaning retail sales, along with the upcoming Consumer Confidence and Jobless Claims reports, will be key in shaping policy expectations.
Future Market Analysis
Looking ahead:
- Short-term: Markets may remain volatile as traders digest earnings updates, macroeconomic data, and geopolitical developments. Sectors like healthcare, semiconductors, and industrials will remain in focus.
- Medium-term: If retail sales surprise to the upside, the Fed might lean toward a more cautious rate cut, potentially pressuring high-growth tech stocks while benefiting defensive sectors.
- Long-term: Buffett’s investment in UnitedHealth and the potential US stake in Intel point toward strategic capital flows into healthcare and semiconductor infrastructure, signaling strong growth opportunities in these areas over the next 5–10 years.
If consumer spending holds up despite higher inflation, and corporate investments in key sectors accelerate, the US equity market could see a broad-based rally toward year-end 2025, although tech valuations might face headwinds from higher-for-longer interest rates.
