US stock futures trimmed their gains but remained higher on Friday amid evidence of a slowing economy. The S&P 500 and the Nasdaq 100 were set to open 0.4% higher at records, while Dow contracts were 200 points higher. New data showed that personal spending and income unexpectedly contracted in May, while core PCE inflation unexpectedly rose. Still, equities benefited from the outlook of relaxed trade policy and greater confidence over incoming rate cuts by the Federal Reserve. Commerce Secretary Lutnick stated that the US reached a trade agreement with China, consolidating the relief of lower tariffs and preventing rare earth shortages. Officials also hinted at progress in a trade deal with India, suggesting that the White House grew some aversion to trade barriers. In turn, the Treasury removed the Section 899 tax from the upcoming tax bill, aiding foreign investment in the US. Nike futures were 10% higher on strong earnings, while tech benefited from the rebound in risk sentiment.
