Wall Street set for firmer open as traders buy the dip ahead of sentiment data

By Niket Nishant and Sukriti Gupta

Wall Street's main indexes were poised to open higher on Friday, as investors sought to buy the dip following a brief pullback, while awaiting the consumer sentiment data for fresh clues on the economy.

Traders remain bullish on equities despite Thursday's declines, betting that the artificial intelligence-driven momentum remains intact. Some analysts expect the AI trade, mostly concentrated in tech so far, to spill over into energy and construction firms as demand for data center buildout accelerates.

"Investors see little pullbacks as opportunities to nibble in and add more capital. There's just a lot of money sloshing around in the system," said Aleksandr Spencer, chief investment officer at Bogart Wealth.

The rally is also driven by a growing fear of missing out, as some analysts say the nearly three-year-old bull market still has room to run, especially if the Federal Reserve continues to lower interest rates.

Recent data has reinforced expectations for easing. While the government shutdown has delayed official releases, proxies point to a weakening labor market, with layoffs tied to the impasse likely to deepen the strain.

At 08:30 a.m. ET, Dow E-minis (YMcv1) were up 81 points, or 0.17%, S&P 500 E-minis ES1! were up 9 points, or 0.13%, and Nasdaq 100 E-minis NQ1! were up 39.25 points, or 0.16%.

A preliminary reading of the University of Michigan's consumer sentiment survey, due at 10:00 a.m. ET, will be closely watched, given the added significance it carries because of the official data blackout.

Investors are also weighing developments in the Middle East, where Israeli troops began pulling back from some parts of Gaza under a ceasefire deal with Hamas. Signs of easing tensions could boost sentiment by removing a long-standing overhang on equities.

The earnings season, which kicks off next week, is expected to be the next litmus test for the rally.

Among stocks, Intel INTC rose 1.9% in premarket trading, after brokerage TD Cowen raised its price target on the stock. Data center operator Applied Digital APLD surged 29.6%, a day after posting better-than-expected revenue for the first quarter.

Oracle ORCL jumped 1.8% after Citigroup raised its price target on the stock.

Levi Strauss LEVI shares slipped 7.4% after it forecast annual profit below analysts' expectations.

Qualcomm QCOM fell 1.3% after China's market regulator said the country has launched an antitrust investigation into the semiconductor manufacturer over its acquisition of Israel's Autotalks.