After showing a substantial recovery over the course of the previous session, stocks are likely to come under pressure in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 42 points.
Stocks futures recently showed a notable move to the downside following the release of the Commerce Department's report on durable goods orders in the month of April.
While the report showed that durable goods orders rose by more than anticipated, the upbeat data added to concerns about the outlook for the Federal Reserve's asset purchase program.
The report said durable goods orders surged up by 3.3 percent in April after tumbling by a revised 5.9 percent in March. Economists had expected orders to climb 1.1 percent compared to the 5.7 percent drop that had been reported for the previous month.
Excluding a rebound in orders for transportation equipment, durable goods orders rose by 1.3 percent in April compared to a 1.7 percent drop in March.
Recent comments from Fed officials have suggested that upbeat economic data may lead the central bank to taper its asset purchase program sooner than previously anticipated.
In Congressional testimony on Wednesday, Fed Chairman Ben Bernanke acknowledged that upbeat economic data could lead the central bank to taper its asset purchase program in the next few meetings.
Additionally, the minutes of the latest Fed meeting said a number of participants expressed willingness to adjust the flow of purchases downward as early as the June meeting.
After moving sharply lower at the start of trading on Thursday, stocks showed a substantial recovery attempt over the course of the trading day. The rebound came as upbeat housing data helped offset worries about the Federal Reserve.
The major averages climbed well off their worst levels of the day but still ended the session in the red. The Dow edged down 12.67 points or 0.1 percent to 15,294.50, the Nasdaq slipped 3.88 points or 0.1 percent to 3,459.42 and the S&P 500 dipped 4.84 points or 0.3 percent to 1,650.51.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Friday following Thursday's sell-off. Japan's Nikkei 225 Index advanced by 0.9 percent, while Hong Kong's Hang Seng Index edged down by 0.2 percent.
The major European markets have also turned mixed on the day. While the French CAC 40 Index has risen by 0.3 percent, the U.K.'s FTSE 100 Index and the German DAX Index have fallen by 0.4 percent and 0.3 percent, respectively.
In commodities trading, crude oil futures are sliding $0.66 to $93.59 a barrel after edging down $0.03 to $94.25 a barrel on Thursday. Gold futures, which jumped $24.40 to $1,391.80 an ounce in the previous session, are slipping $6.10 to $1,385.70 an ounce.
On the currency front, the U.S. dollar is trading at 101.38 yen compared to the 102.02 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.2924 compared to yesterday's $1.2934.
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