Investing.com - Wall Street futures pointed to a slightly higher open on Friday, with the Dow creeping back towards its all-time high at 19,951.29 points and with sights set on the 20,000 psychological level.
The blue-chip Dow futures gained 30 points, or 0.15%, by 7:02AM ET (12:02GMT), the S&P 500 futures advanced 3 points, or 0.12%, while the tech-heavy Nasdaq 100 futures traded up 5 points, or 0.10%.
With the exception of a 0.60% drop on Wednesday when the Federal Reserve (Fed) surprised markets by increasing its 2017 policy tightening expectations to three hikes from the prior two, market participants opted to return to the upward path in U.S. equities.
Wednesday’s pullback had been the largest out of a total of only five down sessions since Donald Trump won the U.S. presidential elections held on November 8 and markets speculated that he would embark on fiscal policies that spur growth and cause inflation to accelerate.
S&P Dow Jones indices senior index analyst Howard Silverblatt noted that the blue-chip index had closed Thursday with a value of $5.553 trillion, having moved from 10,000 points, or $2.373 trillion, on March 29, 1999. He also noted that the Dow hit its bear market low during the financial crisis at 6,547 points, or $2.034 trillion on March 9, 2009.
On Friday, the greenback was undergoing the opposite post-Fed trend, with investors taking profits after the dollar hit a 14-year high against major rivals on expectations of a faster policy tightening path. EUR/USD was also recovering from its lowest level since January 2003.
Gold prices bounced off the previous session’s ten-month lows on Friday, trimming what was expected to be its sixth consecutive weekly decline after the decision to raise interest rates this week continued to lend broad support to the U.S. dollar.
As investors took profit in the greenback, gold moved higher. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.62% at $1,136.85 by 7:04AM ET (12:04GMT), off Thursday’s 10-month trough of $1,123.90.
Friday was expected to be a quiet session ahead of the weekend, with only November building permits and housing starts on the economic calendar, out at 8:30AM ET (13:30GMT).
Meanwhile, oil prices underwent choppy trade on Friday, even as supply cuts seemed to materialize in major oil producing countries.
Kuwait reportedly notified customers on Thursday that it would cut supplies from January as part of an effort by OPEC to stabilize the oil market.
In addition, Russian Energy Minister Alexander Novak said on Friday that all Russian oil companies have agreed to cut crude output under Moscow's agreements with OPEC.
Furthermore, although Goldman Sachs lifted its second quarter estimates for crude on Friday, the broker saw limited short-term upside for oil until confirmation of compliance with the agreement by major oil producers to cut production arrives in mid- to late January.
Investors were also eager to see the latest Baker Hughes’ data on the number of rigs actively drilling oil in the U.S. last week. The latest read saw the number of active rigs jump from 477 to 498 in its sixth consecutive ramp up of production.
Despite earlier losses, oil traded higher in early-morning U.S. trade. U.S. crude futures rose 0.41% to $51.11 by 7:08AM ET (12:08GMT), while Brent oil gained 0.76% to $54.43.