Stocks rose at the open on Friday, as Wall Street digested a fresh read on the Federal Reserve’s preferred inflation gauge that could feed into interest-rate expectations.
Futures on the S&P 500 (^GSPC) gained 0.6%, while the Dow Jones Industrial Average (^DJI) added about 0.5%. The tech-heavy Nasdaq Composite (^IXIC) led the advance, up over 0.9%, with all three benchmarks looking to build on Thursday’s gains.
Firmly in focus is Friday’s release of the Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation indicator. The August data showed that “core” PCE — which strips out food and energy — rose 3.9% on the year, the lowest since September 2021 and down from 4.2% in July. A cooling might dampen expectations the Fed will hike in November.
Stocks are set for sharp losses for the month and quarter as they start the final trading day of a brutal September. The major indices are looking at drops of 3% to 5% for the month, battered by surging oil prices and fears the Fed’s higher-for-longer rates strategy means another hike this year.
Bonds also saw some relief from those pressures on Friday, after comments from Fed officials helped soothe rate jitters. The yield on 10-year Treasuries (^TNX) fell after hitting levels not seen in over 15 years. But while the 30-year Treasury yield (^TYX) retreated, it’s still on track for its biggest jump since 2009 — stoking anxiety about the impact of the bond rout.
Also still weighing on minds is the looming US government shutdown, with its promise of significant harm to the economy and stock market. It’s looking all but inevitable that lawmakers will miss the midnight Saturday deadline to avert it — especially given the lack of a clear sticking point that’s seen it called the “Seinfield” shutdown.
In individual stocks, shares of Nike (NKE) popped around 9% in premarket trading after the retailer reported first-quarter profit that topped estimates and stressed its confidence in Chinese demand.
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Stocks open higher as inflation reading shows cooling
Wall Street began the trading day with fresh optimism, after new government data for the month of August showed the Fed’s preferred inflation metric grew at its slowest pace since September 2021. But even as the day kicked off in the green, September has been a punishing month for the stock market as investors grappled with the Fed’s tightening campaign, which is set to last for several more years.
The S&P 500 (^GSPC) rose by 0.8%, while the Dow Jones Industrial Average (^DJI) increased by 0.7% or 200 points.The tech-heavy Nasdaq Composite (^IXIC) gained 0.8%
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Nike, Tesla, and Alibaba: Stocks trending in premarket trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page in premarket trading on Friday:
Nike (NKE): Nike shares were up 9%. Nike reported fiscal first quarter results after the bell on Thursday that topped Wall Street’s estimates.
Tesla (TSLA): The EV carmaker’s shares were up 1%. Wall Street analysts warned that Tesla may miss estimates for its third-quarter deliveries due to factory shutdowns and softer demand.
Alibaba (BABA): Alibaba’s stock rose as much as 2% after Beijing proposed easing rules on cross-border data flows.
Carnival Corporation (CCL): Shares in Carnival rose by 2%. The cruise operator reports its earnings on Friday.
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KStock futures pop ahead of key PCE inflation data
Wall Street stocks looked set to open in the green as investors waited for the release of inflation data closely watched by the Federal Reserve, but were on track to end September and the quarter with losses.
Futures on the S&P 500 (^GSPC) rose 0.51%, while those on the Dow Jones Industrial Average (^DJI) added 0.49%, or 167 points. Contracts on the tech-heavy Nasdaq 100 were up 0.67%.
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