Stock futures rose Friday following a losing session that dragged the S&P 500 into correction territory.

Futures tied to the S&P 500 added 0.9%, while Nasdaq-100 futures advanced 1.2%. Dow Jones Industrial Average futures gained 230 points, or 0.6%.

Sentiment on Wall Street got a boost Friday as it appeared a government shutdown would be avoided. Senate minority leader Chuck Schumer, D-N.Y., said he wouldn't block a Republican government funding bill.

A 1.4% drop on Thursday dragged the S&P 500 down 10.1% from its record close notched last month, bringing it officially into a correction. This is defined as a decline of at least 10% from a recent high. The 30-stock Dow and Nasdaq Composite slid 1.3% and about 2%, respectively, in the session.

With Thursday's decline, the Nasdaq fell further into correction territory and is now down more than 10% this year. The small cap-focused Russell 2000 has dropped around 19% from its recent high, meaning it's closing in on a bear market, or a drawdown of 20%.

That marks another milestone in the pullback that has gripped investors over the past three weeks as President Donald Trump's on-again-off-again tariff policy drove up uncertainty and market volatility. All three major indexes have dropped more than 4% this week.

The Dow is on track for its second straight losing week and worst weekly decline since June 2022. This would be the fourth negative week in a row for the S&P 500 and Nasdaq.

"In only a few weeks, the broader market has gone from record highs to correction territory," said Adam Turnquist, chief technical strategist for LPL Financial. "Tariff uncertainty has captured most of the blame for the selling pressure and is exacerbating economic growth concerns."

Consumer sentiment stats due Friday morning round out a busy week of economic data that included key inflation reports. Investors are also gearing up for the Federal Reserve policy meeting scheduled for next week, where fed funds futures are pricing in a 97% likelihood of interest rates holding steady, according to CME's FedWatch tool.

Chipotle, Li Auto among stocks moving before market open

Check out the companies making headlines before the bell:

• Rubrik — The data management stock popped 18.5%. Rubrik beat Wall Street's expectations, posting an adjusted loss of 18 cents per share for its fourth quarter, which was narrower than the 39 cent loss expected from analysts polled by LSEG. The company also reported $258 million in revenue, above the consensus estimate of $233 million.
• Chipotle Mexican Grill — The stock rose about 2% after receiving an upgrade to buy from hold at Loop Capital. The firm believes its recent pullback has created an attractive buying opportunity for investors and said that the name is good for managing risk related to President Donald Trump's tariffs.
• Li Auto — U.S.-listed shares of the Chinese electric vehicle maker fell nearly 6% after the company posted a decline in its fourth-quarter net profit. The company's deliveries rose 20% in its latest financial quarter, reflecting the impact of price cuts on its overall revenue.

For the full list, read here.

— Pia Singh

Investors should embrace diversification amid elevated market volatility, UBS says

During this time of ongoing market uncertainty, UBS recommended investors consider diversifying their portfolios to mitigate concentration risks.

"Historical data shows that for U.S. dollar-based investors, risk decreases as the number of countries in a stock portfolio increases," the bank wrote in a Friday note. "So, we recommend investors embrace diversification and stay invested despite ongoing volatility. We see continued positive potential returns in the U.S. equity market, artificial intelligence stocks, as well as companies linked to power and resources."

Within Asia, UBS likes Indian and Taiwanese equities. Within Europe, the bank sees several emerging opportunities, such as post-election beneficiaries in Germany and rising security investments.

UBS added that beyond geographic diversification, investors should also consider adding bonds, gold and alternative assets to their portfolios.

— Lisa Kailai Han

Chinese stocks close at three-month high, leading gains in Asia, despite fall on Wall Street

Asia-Pacific markets mostly rose on Friday despite a plunge in all three benchmarks in the U.S. over the previous session amid concern about President Donald Trump's tariff plans.

Mainland China's CSI 300 led gains in Asia, rising 2.43% to end the end the day at a three-month high of 4,006.56. This follows stronger movements in the healthcare, consumer cyclicals and non-cyclicals sectors.

Hong Kong's Hang Seng Index rose 2.12% to end the day at 23,959.98. Pharmaceuticals company WuXi Biologics was the top mover in the index, gaining 13.95%.

Other top performing stocks include BYD which surged 6.04%, Meituan which rose 5.71% and Ping An Insurance which was up 5.59%.

In Japan, the benchmark Nikkei 225 ended the day 0.72% higher at 37,053.10, while the broader Topix index rose 0.65% to 2,715.85.

South Korea's Kospi index lost 0.28% to close at 2,566.36 while the small-cap Kosdaq advanced 1.59% to 734.26.

Australia's S&P/ASX 200 ended the trading day 0.52% higher at 7,789.70.

Indian markets were closed for a public holiday.

— Amala Balakrishner

Utilities emerge as the only winning sector in a grim week for the market

The S&P 500's utilities sector is on pace for the slimmest of gains this week – up just 0.02% through Thursday's close.

This corner of the market, known for its dividend payments, is a rare bright spot for stocks, which have been whiplashed amid President Donald Trump's tariff plans. The utilities managed to emerge from Thursday's tumble – in which the S&P 500 closed in correction territory – with a roughly 0.3% gain.

Big winners this year in utilities include Consolidated Edison, up 17%; Exelon, up 15.5%; and American Water Works, up 14.5%. ConEd has a dividend yield of 3.3%, while Exelon pays a dividend yield of 3.7%. American Water Works' dividend yield is 2.1%.

–Jason Gewirtz, Darla Mercado

Five of the Mag 7 stocks are already in a bear market, and the other two are thisclose

Five of the Magnificent 7 stocks that led the market higher in the bull market of 2023 and 2024 are now down 20% or more from their recent highs — regarded on Wall Street as signaling a bear market in a given asset — as of Thursday's close. The other two are less than one percentage point away.

Here's all the members:

• Tesla -50.7% (12/18 high)
• Nvidia -24.5% (1/7)
• Alphabet -21.4% (2/4)
• Meta Platforms -20.3% (2/14)
• Amazon -20.1% (2/4)
• Apple -19.4% (12/26)
• Microsoft -19.1% (7/5)

— Scott Schnipper

See the stocks moving after hours

These are the stocks moving in extended trading:

• Ulta Beauty — Shares of the beauty retailer popped 7% after the company surpassed expectations for the fourth quarter.
• PagerDuty — The data stock surged 9% following strong earnings and the announcement of a share repurchase program.

See the full list here.

— Alex Harring

Stock futures rise

Stock futures ticked higher shortly after 6 p.m. ET.

S&P 500 and Dow futures each added 0.2%. Nasdaq 100 futures increased 0.3%.

— Alex Harring