Good morning traders, and welcome to Friday. After a week dominated by inflation data, surprise political headlines, and earnings beats, markets are now entering the final session with some hesitation and a slight shift in tone.
Thursday was packed with action. The biggest story remained the fallout from Wednesday’s Trump–Powell firing rumor, which created a textbook whipsaw in the markets. Despite Trump’s denial, volatility remained elevated, and Thursday saw FX and commodities struggling for direction.
On the data front, U.S. retail sales came in strong at 0.6% vs. 0.1% expected, but the dollar failed to capitalize, showing fatigue in both the U.S. and Asian sessions. Meanwhile, the Australian dollar remained the weakest performer, still under pressure after the disappointing employment data earlier in the week.
Earnings continued to roll in. Netflix reported strong earnings after the bell, but the pre-market reaction is negative, with the stock down roughly 2% — a reminder that forward guidance and positioning continue to matter. Other notable names like GE Aerospace and Abbott Labs also beat expectations but saw negative price reactions, suggesting investor sentiment is more cautious than the numbers suggest.
This Friday morning, futures are flat to slightly lower, with both European and U.S. indices pausing after a week of gains and new all-time highs. Sentiment remains broadly bullish, but momentum is cooling into the weekend.
In commodities, we’re seeing early signs of a rebound in metals.
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Gold is attempting to recover from the week’s earlier losses.
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Silver and platinum are stabilizing after a soft Thursday.
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Oil is also trying to firm up, though the week overall has been negative for crude.
In currencies, the U.S. dollar continues to ease, giving back more of its earlier gains. The euro and British pound are showing mild strength, while the yen and franc remain relatively stable. The Australian dollar is trying to claw back, but remains under pressure overall.
The only data of note today is the University of Michigan consumer sentiment (prelim), due later in the session. It's unlikely to be a market-mover unless there's a significant surprise.
With a busy week behind and a light data calendar ahead, Friday looks more like a positioning day — but given this week’s volatility, traders will be watching closely for any surprise headlines or final shifts before the weekend.