Stock Market Today: Stocks' record run on pause as bulls take a breath

Check back for updates throughout the trading day

U.S. equity futures turned lower Friday, testing the recent run of records for the three major indices, as investors continue to search for bullish signals from a market spurred by the Federal Reserve's signaling of spring rate cuts.

Updated at 8:37 AM EDT

Tesla's China Challenge

Tesla shares extended their $240 billion year-to-date slump amid reports that suggest the EV maker is looking to trim production rates in China, it's biggest and most important market, amid fading consumer demand.

 Tesla shares were marked 3.8% lower in premarket trading to indicate an opening bell price of $166.13 each, a move would extend the stock's year-to-date decline to around 33%.

Related: Tesla shares extend slump as China move highlights key demand risk

Check back for updates throughout the trading day

The Dow Jones Industrial Average led gainers Thursday, usurping the recent dominance of tech-focused Nasdaq, as all three major benchmark notched their second consecutive session of record closes – including the 20th of the year for the S&P 500 – powered by a dovish Fed, solid economic data and muted market volatility.

Reddit's opening-day trading on the NYSE, which saw the social-media group's stock leap 48% into the close, added to the bullish tenor, as did the ongoing gains for the chip sector and the underlying surge in AI investments.

A surprise dip in weekly jobless claims, which fell to 210,000 last week, as well as a robust reading of economic activity from S&P Global's benchmark PMI survey for March underscored the Fed's recent upgrades for growth and inflation. 

Focus is likely to shift to the fleet of Fed officials due to provide public comment on policy over the coming weeks, including a brief set of remarks from Fed Chairman Jerome Powell this morning at a 'Fed Listens' event in Washington.

Benchmark 10-year Treasury note yields were little changed at 4.241% while 2-year notes eased to 4.608% in overnight dealing.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.94% higher at 104.388, although much of the move was linked to a slump in the yen, which hit a four-month low of 151.86 in overnight dealing.

On Wall Street, the market's key volatility gauge, the VIX index, slipped to within touching distance of the lowest levels in five years in the overnight session, and was last marked 1.15% lower at 12.89.

That effectively means that traders are expecting a daily moves for the S&P 500 of no more than 0.8%, or 41 points, over the next 30 days. 

Several stocks are on the move in premarket dealing, however, with Nike  (NKE)  shares sliding 6.3% after the sportswear giant forecast weaker-than-expected sales over the second half of its fiscal year.

Lululemon Athletica  (LULU)  was also in the red, falling 13% after the upscale clothing retailer warned that North American sales would suffer amid a pullback in higher-end demand.

FedEx  (FDX) , meanwhile surged 12% after the world's second-largest package delivery group topped Wall Street earnings forecasts and said its ongoing drive to cut costs is fattening its profit margins.

In broader markets, futures contracts tied to the S&P 500 suggest a 7 point opening-bell gain for the blue-chip benchmark, while those linked to the Dow suggest a 20 point dip.

The tech-focused Nasdaq, meanwhile, is called 50 points lower as pre-market gains for Nvidia  (NVDA) , Apple  (AAPL)  and Micron  (MU)  can't offset another move lower for Tesla  (TSLA) .

In overseas markets, Europe's Stoxx 600 was marked just 0.03% higher in early Frankfurt trading. Britain's FTSE 100 added 0.8% in London thanks in part to a weakening pound, which eased to 1.2581 following a dovish tilt from the Bank of England yesterday.

Overnight in Asia, another slump in China stocks pulled the MSCI ex-Japan benchmark 1.04% lower into the close of trading, while the weaker yen helped the Nikkei 225 gain 0.18% in Tokyo.

Related: Veteran fund manager picks favorite stocks for 2024