Markets in Flux: Wall Street Awaits Economic Clarity Amid Trump Era

Wall Street's major indexes looked set to open higher as attention turned to economic data and potential policy changes under President-elect Trump. Despite a rough start to the year, analysts are focused on risks and opportunities linked to upcoming policies, with rate expectations adjusting accordingly.

Wall Street's major indexes were set for a positive opening on Friday, as investors watched closely for economic indicators and prepared for policy changes under the Trump administration.

The new year began unfavorably for Wall Street; both the S&P 500 and Nasdaq wiped out early gains and dropped for a fifth straight session on Thursday. Investors are cautious about Trump administration's policies, which promise economic stimulation but also carry inherent risks.

Uncertainty around these policies has analysts questioning their possible inflationary effects, leading to speculation about Federal Reserve rate changes. Investors anticipate a decrease in rates this year, while U.S. equity funds saw a sharp decline in inflows.

(With inputs from agencies.)