US Markets

Futures point to weak open on Wall Street; tax news in focus

Key Points
  • On Thursday, all major U.S. indexes posted sharp declines, on the back of concerns that a corporate tax cut could be delayed
Stock futures point to extension of Thursday sell-off

U.S. stock index futures pointed to a lower open Friday, as investors digested the latest news surrounding the U.S. economy.

Dow Jones industrial average futures fell 49 points, while S&P 500 and Nasdaq 100 futures declined 9.5 points and 20 points, respectively.

In the previous trading session, all major U.S. indexes posted sharp declines with the Dow falling 101 points, on the back of concerns that a corporate tax cut could be delayed.

Traders work on the floor of the New York Stock Exchange (NYSE) on July 17, 2014 in New York City.
Spencer Platt | Getty Images News | Getty Images

A proposed plan by Senate Republicans would push chopping the corporate tax rate from 35 percent to 20 percent until 2019. Republicans argue that the reduction will assist in motivating firms to keep their operations within the U.S., boost salaries and be able to employ more people.

The move, however, is seen as contradicting with another bill which is currently working its way through the House.

Elsewhere, President Donald Trump continues his trip across Asia Friday. On the last trading day of the week, the incumbent brought the topic of trade to the table in Vietnam.

Speaking at the Asia-Pacific Economic Cooperation summit in Vietnam, Trump stated that while the U.S. was ready to make bilateral deals with countries in the Indo-Pacific region, this would only be on the foundation of "mutual respect and mutual benefit," adding that the States could no longer tolerate chronic trade abuses.

After a bumper week of corporate earnings, Friday delivered a lighter load than usual. JC Penney released quarterly results that were better than expected, sending the stock 7 percent higher before the bell.

Meanwhile in data news, consumer sentiment data is set to be released at 10:00 a.m. ET.

Overseas, European stocks dipped lower during early market trade, while markets in Asia finished mostly in the red.

—CNBC's Jacob Pramuk contributed to this report