Source: Sharecast
As of 1250 BST, Dow Jones and S&P 500 futures were both flat, while Nasdaq-100 futures had the index opening just 0.01% higher.
The Dow closed 124.10 points firmer on Thursday, with major indices hitting fresh closing highs due to strong gains in the tech sector on hopes that an interest-rate cut will bolster economic growth.
Wall Street looked set for a mixed open on Friday, with futures drifting as investors continued to weigh the Federal Reserve's latest rate cut against lingering uncertainty over the pace of future easing.
While the Nasdaq continued to benefit from renewed appetite for tech stocks, broader sentiment was tempered by Fed chair Jerome Powell's cautious tone, describing the move as "risk management" rather than the start of a sustained cutting cycle. Traders have now priced in two more reductions this year, but expectations for 2026 have been scaled back sharply, with the central bank's dot plot signalling just one cut — well below market forecasts.
Adding to the day's volatility, market participants were bracing for the expiry of September's monthly options contracts, including key positions in equity indices and tech-heavy ETFs. The third Friday of the month typically sees elevated volumes and price swings as positions are rolled or closed, with Nasdaq-linked contracts in particular drawing attention amid renewed sector momentum.
Rostro's Joshua Mahony said: "US stock futures are on the back foot in early trade, as investors have taken on a more cautious stance ahead of a highly anticipated call between President Trump and Chinese President Xi Jinping. Trump has fuelled optimism by suggesting a TikTok deal is close to completion, and even speculated that wider trade discussions between the two largest economies were 'pretty close to a deal'.
"However, he also downplayed expectations for a breakthrough, noting the US may simply extend the current tariff truce, which he described as offering 'pretty good terms'. The desire to strike a deal appears to be evident in the fact that Trump has pre-empted the meeting by halting the $400m military aid package offered to Taiwan. Has the President thrown his Taiwanese allies under the bus in a bid to gain trade concessions with the Chinese?"
No major macro points or corporate earnings were slated for release on Friday.
Reporting by Iain Gilbert at Sharecast.com
