U.S. stock index futures retreated Friday following the release of weaker-than-anticipated fourth-quarter gross domestic product figures, reversing earlier gains. The pullback comes as investors digested economic data alongside Friday's personal consumption expenditures inflation report. Market participants remain focused on Federal Reserve policy expectations, with current pricing indicating a 94% probability that the central bank will maintain its current interest rate stance at its March meeting.
Notable corporate developments drove individual stock movements across multiple sectors. Diagnostic company Grail experienced a sharp 47% decline following disappointing fourth-quarter earnings results, while biopharmaceutical firm Candel Therapeutics fell on announcement of a secondary stock offering. Cloud storage provider Dropbox declined despite reporting earnings that exceeded analyst expectations, and automotive services company Copart missed projected earnings performance. In contrast, Comfort Systems USA announced an increase to its dividend payout.
Equity strategists are positioning for continued market navigation in the current environment. Wells Fargo strategists recommended a rotational approach favoring cyclical sectors such as Financials and Industrials over defensive positioning, suggesting confidence in economic resilience despite recent macroeconomic indicators.