Investors Optimistic as U.S. Stocks Rally Ahead of Trump Administration

U.S. stock index futures rose on Friday, as the S&P 500 and Dow are poised for their largest weekly gains since November, driven by strong bank earnings and eased inflation. Investors anticipate policy changes with President-elect Trump's administration and assess economic data ahead of market opening.

On Friday, U.S. stock index futures saw an uptick, with the S&P 500 and Dow poised for their most significant weekly gains since November. This surge is attributed to robust earnings reports from major banks and signs of cooling inflation, which have spurred investor risk-taking on Wall Street.

As of early morning trades, Dow E-minis had risen by 127 points, marking a 0.29% increase, while S&P 500 E-minis climbed 19.75 points at 0.33%. Nasdaq 100 E-minis also followed the trend, rising by 90 points, or 0.42%. The banking sector outperformed, with the S&P 500 banking index and regional banks showing notable gains.

With President-elect Donald Trump's imminent inauguration, investor focus shifts to potential policy shifts, including tax cuts and regulatory changes. While optimistic about economic growth, concerns linger over potential trade tensions. Market watchers are also keenly awaiting economic indicators such as building permits and housing data for further insights.

(With inputs from agencies.)