U.S. Stocks May See Further Upside In Early Trading

(RTTNews) - Stocks may move to the upside in early trading on Friday, adding to the gains posted in the previous session. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

The markets may continue to benefit from recent upward momentum, which has helped to propel the major averages to new record highs.

While September is typically the worst month for stocks, the major averages have trended higher over the first few weeks of the month.

Optimism about the lower interest rates has contributed to the strength on Wall Street, with the Federal Reserve cutting rates by a quarter point on Wednesday and signaling two more rate cuts this year.

Traders are also likely to keep an eye on the outcome of a phone call between President Donald Trump and his Chinese counterpart Xi Jinping aimed at finalizing a deal over TikTok's U.S. operations.

Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

Uncertainty about the next major catalyst for the markets following the Fed's rate cut may also lead to relatively light trading activity.

After moving mostly higher early in the session, stocks continued to turn in a strong performance throughout the day on Thursday. The major averages all moved to the upside after ending Wednesday's trading mixed, reaching new record closing highs.

The tech-heavy Nasdaq led the way higher, jumping 209.40 points or 0.9 percent to 22,470.73. The S&P 500 also climbed 31.61 points or 0.5 percent to 6,631.96, while the Dow rose 124.10 points or 0.3 percent to 46,142.42.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Friday. Japan's Nikkei 225 Index slid by 0.6 percent and China's Shanghai Composite Index fell by 0.3 percent, while Australia's S&P/ASX 200 Index increased by 0.3 percent.

The major European markets have also turned mixed on the day. While the German DAX Index is down by 0.1 percent, the U.K.'s FTSE 100 Index is just above the unchanged line and the French CAC 40 Index is up by 0.2 percent.

In commodities trading, crude oil futures are falling $0.44 to $63.13 a barrel after sliding $0.48 to $63.57 a barrel on Thursday. Meanwhile, after plunging $39.50 to $3,678.30 an ounce in the previous session, gold futures are inching up $2.10 to $3,680.40 an ounce.

On the currency front, the U.S. dollar is trading at 148.14 yen versus the 148.00 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1735 compared to yesterday's $1.1788.