Wall Street futures inch higher as S&P 500 rides record-setting streak

Meanwhile, Netflix shares fell over 1 percent after hours, despite exceeding both revenue and earnings forecasts and raising its full-year outlook. The muted reaction suggests the results were largely priced in.

For the week, the S&P 500 is up 0.6 percent, the Dow is higher by 0.3 percent, and the Nasdaq is leading with a 1.5 percent gain, propelled by sustained strength in tech and growth sectors.

“The market deserves the benefit of the doubt,” said Keith Lerner, co-chief investment officer at Truist. “The economic data shows the economy may be cooling, but it’s certainly not collapsing.”

Investors have been encouraged by strong corporate performance across banks, airlines and consumer names. Thursday’s gains followed solid results from PepsiCo and United Airlines, reinforcing confidence in the underlying economic momentum.

That said, some are beginning to look beyond the US. Investor Tim Seymour told CNBC that the recent wave of outperformance may now shift globally. “I’m not here to tell you US exceptionalism is over, but I think it’s peaked,” he said.

With earnings from American Express and others still to come, and broader macro conditions appearing stable, markets are poised to end the week on firm footing — even as global rotation and valuation questions remain on the horizon.

In macroeconomic developments, the US economy continues to beat expectations, dispelling concerns of an imminent slowdown. June retail sales surprised to the upside, while weekly jobless claims fell more than anticipated, and Philadelphia Fed’s July business confidence index jumped unexpectedly.

These positive data points follow stronger-than-forecast industrial production figures earlier in the week and a benign producer price report, contributing to a swift rebound in the US economic surprise index, now at its highest level since May. The Atlanta Fed’s GDPNow model currently projects second-quarter growth at 2.4 percent.

Despite isolated weaknesses—such as falling housing starts and elevated input prices in manufacturing—the broader outlook has turned cautiously optimistic. “The economy may be cooling, but it’s certainly not collapsing,” said Keith Lerner, co-chief investment officer at Truist.

Still, questions remain around Federal Reserve policy. While markets are no longer pricing in aggressive near-term easing, Fed Governor Christopher Waller reiterated that a rate cut could still come this month, citing rising risks to employment. His comments come amid speculation over potential leadership changes at the central bank, with Fed Chair Jerome Powell facing mounting political pressure related to cost overruns at the Fed’s renovation project.

Global sentiment lifts markets; UK, Japan in focus
Outside the US, global equities were largely buoyant. The UK stock market has begun reversing its multi-year underperformance, bolstered by cheap valuations, lighter post-Brexit regulation, and optimism around a UK–US trade pact.

In Japan, the Nikkei bucked global trends, dipping ahead of key weekend elections that could test Prime Minister Shigeru Ishiba’s hold on power. Fiscal uncertainty looms, with speculation of further stimulus or even a cut in the consumption tax if inflation remains sticky.

Japanese government bonds rallied, and the yen stabilised following sharp losses earlier in July. Japan’s core inflation rate has now remained above the Bank of Japan’s two percent target for over three years.

Meanwhile, in Washington, the House of Representatives passed the long-awaited “Genius Act”, which lays the groundwork for regulating US dollar-pegged stablecoins. Two other crypto-related bills are also advancing, including one banning the issuance of a central bank digital currency (CBDC). Bitcoin hovered just under $119,000 on Friday, steady amid growing institutional interest.