U.S. stock index futures edged lower in pre-market trading on Friday, February 20th. At the time of writing, Nasdaq futures were down 0.01%, S&P 500 futures declined 0.02%, and Dow Jones futures fell 0.03%.
European markets showed gains, with Germany's DAX index up 0.37%, Britain's FTSE 100 rising 0.63%, France's CAC 40 advancing 0.85%, and the Euro Stoxx 50 increasing 0.45%.
In commodities, WTI crude oil dipped 0.26% to $66.23 per barrel, while Brent crude fell 0.27% to $71.47 per barrel.
**Market News** Tensions escalated in the Middle East as the U.S. administration issued an ultimatum to Iran regarding its nuclear program. Geopolitical risks intensified significantly, with reports indicating a major U.S. military deployment in the region, the largest since before the 2003 Iraq war. Gold, a traditional safe-haven asset, held steady near $5,000 per ounce.
The preliminary reading for U.S. fourth-quarter GDP is imminent, with expectations pointing to a significant slowdown from the previous quarter. The Bureau of Economic Analysis is scheduled to release the data, with consensus estimates forecasting annualized growth of 1.9%, substantially lower than the 4.4% growth recorded in the third quarter.
The U.S. and Indonesia finalized a reciprocal trade agreement, under which Indonesia will remove tariff barriers on over 99% of U.S. exports. The U.S. will maintain a 19% reciprocal tariff rate on Indonesian goods, with certain products qualifying for zero tariffs. The agreement also includes approximately $330 billion in commercial cooperation arrangements.
A report from the J.P. Morgan Chase Institute indicated that U.S. mid-sized businesses have been severely impacted by tariffs, with their monthly tariff expenses tripling since early 2025. The report concluded that U.S. businesses and consumers bear 96% of the tariff costs.
Goldman Sachs projected that gold prices will climb gradually, reaching $5,400 per ounce by the end of 2026, driven by central bank purchasing and private investment. The firm expects central bank gold buying to accelerate again in 2026 at the pace seen in 2025.
**Individual Stock News** Shares of Blue Owl Capital Inc. fell sharply after the company decided to limit redemptions for one of its private credit funds, raising fresh concerns about underlying risks in the $1.8 trillion market. The stock dropped approximately 6% on Thursday to its lowest level in over two years.
Nvidia is reportedly in advanced talks to invest up to $30 billion in OpenAI as part of a new funding round. The investment would value OpenAI at $730 billion pre-money.
Tesla launched a more affordable version of its Cybertruck in the U.S., priced at $59,990. The company also reduced the price of its highest-end "Cyberbeast" model from $114,990 to $99,990.
Swedish "buy now, pay later" firm Klarna Group plc reported its first-ever quarter with revenue exceeding $1 billion. However, the company posted a pre-tax loss of $241 million for the second consecutive quarter since its IPO. Its stock price plummeted nearly 27% to a record low.
Newmont Corporation reported better-than-expected fourth-quarter results, buoyed by record-high gold prices, and announced a $1.4 billion investment to develop assets acquired from Newcrest. Revenue rose 21% year-over-year to $6.82 billion.
Netflix's co-CEO Ted Sarandos stated that a potential acquisition of Warner Bros. Discovery would result in more films being released in theaters, countering industry skepticism about the deal.
**Key Economic Data and Events Schedule** * 21:30 Beijing Time: U.S. December PCE Price Index (YoY), Core PCE Price Index (YoY) * 21:30 Beijing Time: U.S. Q4 Real GDP Annualized QoQ (Preliminary) * 22:45 Beijing Time: U.S. February SPGI Manufacturing PMI (Preliminary) * 22:45 Beijing Time: Speech by 2027 FOMC Voter and Atlanta Fed President Bostic on the Economic Outlook * 23:00 Beijing Time: U.S. February University of Michigan Consumer Sentiment Index (Final)