U.S. stock markets will operate on their regular schedule Friday, while bond markets will close early ahead of the Memorial Day weekend. Both markets will be closed Monday for the federal holiday.
Stock index futures pointed to a higher open Friday morning. Dow e-minis gained 0.3%, S&P 500 e-minis rose 0.31%, and Nasdaq 100 e-minis climbed 0.5% as of 4:55 a.m. Eastern. The 10-year Treasury yield fell 2.2 basis points to 4.56%, reflecting a move into bonds.
The split in trading hours between equities and fixed income is a regular occurrence around holidays. The Securities Industry and Financial Markets Association (SIFMA) recommends that U.S. fixed-income markets close early at 2 p.m. Eastern on Friday. This affects trading in Treasuries, corporate bonds, and mortgage-backed securities.
Thursday's session ended higher, providing tailwinds. The S&P 500 edged up 0.2% to 7,445.72, the Dow Jones Industrial Average rose 0.6% to 50,285.66, and the Nasdaq Composite added 0.1% to 26,293.10. For the week through Thursday, the S&P 500 was up 0.5% and the Dow had gained 1.5%.
AI spending and energy-driven inflation risk remain the dominant themes. UBS Global Wealth Management raised its year-end 2026 S&P 500 target to 7,900 from 7,500, citing steady consumer spending and strong demand for data center infrastructure. Carol Schleif, chief market strategist at BMO Private Wealth, noted that "technology is driving the bus" after Wednesday's rally, highlighting the market's focus on chip and software stocks.
Geopolitical risks, while still present, appear less immediately damaging to sentiment, according to Naeem Aslam, chief investment officer at Zaye Capital Markets. However, thin trading volumes ahead of the holiday could amplify moves in oil, interest rates, or geopolitical developments. Matt Britzman, senior equity analyst at Hargreaves Lansdown, warned that uncertainty around U.S.-Iran talks remains high, and George Saravelos of Deutsche Bank cautioned that energy prices need to fall soon to avoid fueling inflation.
Key stocks moving higher in premarket trading included Nvidia, AMD, and Broadcom. The CME Group’s BrokerTec U.S. repo market will close early Friday and remain closed Monday, along with the Chicago trading floor.
As traders head into the long weekend, the key question is what markets will look like Tuesday—whether oil and yields have stabilized or if a wave of catch-up trades awaits.
