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S&P, Dow Jones, Nasdaq futures gain as bulls look to snap weekly losing streak

Stock index futures point to a higher open on Friday, with the major indexes on track to end a three-week losing streak.

S&P futures (SPX) +0.8%, Nasdaq 100 futures (NDX:IND) +1.1%, and Dow futures (INDU) +0.7% are all higher.

The S&P and Nasdaq are up 2% this week and the Dow is up 1.5%.

Interest rates are down slightly. The yield on 10-year Treasuries (US10Y) is down 3 basis points to 3.26% and the yield on 2-year Treasuries (US2Y) is down 2 basis points to 3.47%.

There's not too much market movement on the economic data front, but there is one last chance to hear from Fed members before the blackout period.

Chicago Fed President Charles Evans delivers opening remarks shortly after trading begins. At noon, Fed Governor Christopher Waller will speak about the macroeconomic outlook, and Kansas City Fed President Esther George will participate in a Peterson Institute event.

"Fed Chairman Powell's speechwriters struck a hawkish tone yesterday," said Paul Donovan, chief economist at UBS. "The June policy mistakes mean markets can have limited confidence in forecasts when one wrong statistic can clearly change the Fed's policy stance. Expectations for tightening have solidified, and market attention is more focused on how much risk there is of a slump."

The market now expects an 86% chance of a 75 basis point hike. But inflation data is still due next week, and a very tame CPI number could put 50 basis points back in play.

"Significantly lower energy prices will push sequential headline inflation into negative territory," Morgan Stanley says. They forecast headline inflation to fall below 8%.

"Core inflation is also expected to remain relatively weak as core goods prices decline. However, rental inflation is likely to remain strongly elevated for some time, so the Fed will continue on a steep tightening path."

Among active stocks, DocuSign has risen sharply as the outlook shows continued revenue momentum.

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