Traders were busy at the New York Stock Exchange early Friday, as stock futures rose ahead of an important inflation report. This report could influence future Federal Reserve rate cuts.
Futures linked to the Dow Jones Industrial Average increased by 51 points, about 0.1%. The S&P futures rose by 0.3%, and Nasdaq 100 futures climbed by 0.5%.
Interestingly, stock futures appeared unfazed by President Trump’s declaration that he was halting trade talks with Canada. The reason? An ad in Ontario featuring former President Reagan.
Investors are particularly focused on the September consumer price index (CPI) due to the ongoing U.S. government shutdown, which means limited federal data. The CPI was delayed from its original release date of October 15 and is now seen as the last significant data point before the Fed’s meeting next week. Economists estimate that the CPI will show a 3.1% annual rate, slightly higher than August’s figures.
If the CPI aligns with expectations or shows lower numbers, it could lead to rate cuts at the Fed’s upcoming meetings. However, a surprising spike in inflation might unsettle markets.
“Markets remain cautious,” noted Vishal Khanduja from Morgan Stanley Investment Management. “The lack of reliable data introduces uncertainty. The CPI will provide some clarity. The effects of tariffs infiltrating inflation will be crucial.”
On the corporate side, Intel shares saw a notable 9% increase after the chipmaker reported strong sales. Target’s stock rose slightly as the retailer announced it would cut 8% of its workforce, its first major layoffs in ten years.
Overall, the three major U.S. indexes ended the previous session on a high note, thanks to tech stock gains. The S&P 500 was up nearly 0.6%, the Dow gained 144 points, or 0.3%, while the tech-centric Nasdaq Composite surged 0.9%.
Stocks are on track for weekly gains, with the S&P 500 aiming for a 1.1% increase and both the Nasdaq and Dow close to a 1.2% rise.
According to recent data from Bloomberg, tech stocks are leading the market’s recovery, showcasing the continued investor confidence in the sector. As we approach the heart of third-quarter earnings season, the market’s performance will hinge on these reports.
For more insights on inflation trends, check out the latest report from the Bureau of Labor Statistics.
In summary, with crucial data on the horizon and mixed corporate news, all eyes will be on how the market reacts in the coming days.
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