Dow futures remain near the flatline following a session in which the indices reached new highs. Adobe, the owner of Photoshop, has raised its annual revenue and profit forecasts, attributing this adjustment to robust demand for its products enhanced by artificial intelligence. A survey, with economists poised to monitor household inflation expectations closely. Meanwhile, OpenAI, the creator of ChatGPT, and Microsoft have reached a non-binding agreement regarding the AI start-up’s intentions to transition into a for-profit entity.

Dow futures exhibited a lack of momentum on Friday, following significant increases in Wall Street’s primary indices during the previous session, driven by economic data that solidified anticipations for a Federal Reserve interest rate reduction in the upcoming week. As of 03:34, the S&P 500 experienced a decline of 3 points, equivalent to 0.1%. Meanwhile, Nasdaq 100 futures remained largely stable, and Dow futures saw a decrease of 32 points, also representing 0.1%. On Thursday, the blue-chip Dow Jones Industrial Average achieved a record-high close. The benchmark S&P 500 and tech-heavy Nasdaq Composite increased by 0.85% and 0.72%, respectively, reaching all-time highs as well. Supporting the sentiment were figures indicating that U.S. consumer price growth accelerated in August, aligning closely with expectations, while weekly initial jobless claims rose to nearly a four-year high. The data bolstered expectations that the Federal Reserve would reduce interest rates during its meeting on September 16-17, as officials appeared to favor a softer labor market in light of persistent inflation concerns. Markets are nearly convinced that the Fed will lower borrowing costs from their existing range of 4.25% to 4.5% by a minimum of 25 basis points. The probability that the central bank will choose a more substantial, half-point reduction stands at approximately 7%. The indices experienced an uplift, driven by a notable increase in shares of the electric car manufacturing leader, Tesla. Micron Technology experienced a 7.5% increase after Citigroup raised its price target for the memory chip manufacturer.

Adobe has increased its annual financial projections, attributing this adjustment to robust demand for its design software tools enhanced by artificial intelligence. Shares in the company known for its widely used editing platforms such as Photoshop and Premiere Pro rose by slightly more than 3% during after-hours trading. Nonetheless, the stock has declined by over 20% this year, as investors express concerns regarding Adobe’s capacity to generate returns from its substantial investments in AI. In response to escalating competition from smaller rivals such as Figma, Adobe has introduced Firefly, an AI-driven tool designed to assist users in generating videos and images based on text prompts. Concerns persist among analysts regarding Firefly’s potential to catalyze widespread adoption of Adobe’s products. However, CFO Dan Durn informed that the primary contributors to growth have been new users and subscribers. Adobe has revised its fiscal 2025 revenue expectations to a range of $23.65 billion to $23.70 billion, up from the prior estimate of $23.50 billion to $23.60 billion. Full-year adjusted per-share profit is projected to range between $20.80 and $20.85, compared to the previous forecast of $20.50 to $20.70.

On Friday, investors will have the opportunity to analyze additional economic indicators, with the highlight being a measure of consumer sentiment from the University of Michigan. Economists expect that the September survey will align with the results from the previous month. In August, the measure declined to 58.2, as households continued to express concerns regarding the potential effects of extensive U.S. tariffs on prices. Consumers’ 12-month inflation expectations have risen to 4.8%, significantly exceeding the 2% target level set by the Fed. Long-run expectations were reported at 3.5%. Analysts indicated they would be “keeping a close eye” on these numbers. On Thursday, data  of Labor Statistics indicated that the consumer price index rose to 2.9% in the 12 months leading to August, up from 2.7% in July, aligning with economists’ forecasts. The month-on-month inflation gauge registered at 0.4%, an increase from 0.2% in the previous month and marginally exceeding the anticipated rate of 0.3%.

On Thursday evening, Microsoft and OpenAI announced that they had come to a non-binding agreement regarding the AI start-up’s intentions to shift towards a for-profit structure. Following the announcement, shares of Microsoft experienced an increase in after-market trading. The firms did not disclose specific terms of the arrangement, but in a joint statement, they indicated that the agreement pertains to the “next phase” of their partnership. The two indicated that they are “actively working to finalize contractual terms in a definitive agreement.” OpenAI stated that the company’s non-profit entity will receive over $100 billion — or approximately one-fifth of the $500 billion valuation it is pursuing in public markets – “making it one of the most well-resourced philanthropic organizations in the world.” Confronted with increasing revenue and the necessity to enhance computing capacity to accommodate rising demand, OpenAI has been exploring the adoption of a more traditional corporate structure and establishing partnerships with a broader range of cloud providers. Microsoft, which previously held exclusive rights to sell OpenAI’s tools, has recently relaxed its grip, permitting OpenAI to pursue a significant data center project.

Oil prices declined, compounding the significant losses from the prior session due to concerns regarding oversupply and a potential decrease in U.S. demand. At 03:34 ET, Brent futures declined by 0.7% to $65.91 per barrel, while U.S. West Texas Intermediate crude futures also decreased by 0.7% to $61.92 per barrel. Oil prices declined by nearly 2% on Thursday; however, the crude benchmarks remain positioned for weekly gains following a robust start to the week, driven by concerns over potential disruptions to output or trade flows stemming from conflict and war. An Energy Information Administration report on Wednesday indicated that U.S. crude stocks increased last week by 3.9 million barrels to 424.6 million barrels, implying that demand in the world’s largest energy consumer is likely to decelerate as the year advances. Furthermore, the International Energy Agency indicated in its monthly report that global oil supply is projected to increase at a faster pace than previously anticipated this year, driven by planned production hikes from the Organization of the Petroleum Exporting Countries and its allies, including Russia, collectively referred to as OPEC+.