US Futures Waver as Post-PCE Relief Rally Fades – Europe Market Wrap

US market futures gave up slight gains, while European stocks dropped from highs, as the relief rally sparked by an in-line report on US inflation faded.

Contracts for the S&P 500 and Nasdaq 100 varied after both indexes finished at new highs Thursday. After detecting “material weaknesses” in how it handles credit risks, New York Community plummeted more than 30% in Friday’s premarket. The Stoxx 600 index in Europe pared up to 0.5% of its gains.

Equity market sentiment is becoming more cautious following the positive outlook from Thursday’s US data. The favoured inflation gauge of the Federal Reserve, personal consumption expenditures, increased in January at the quickest rate in almost a year, although it was in line with economist predictions. The figures on jobless claims, which suggested a softening labour market, also gave traders hope.

Treasuries appeared to be rising for a third session, but the dollar index barely moved.