Traders on the floor at the New York Stock Exchange experienced a relatively stable trading session on Thursday night as markets prepared for a significant inflation report due for release on Friday. Futures tied to the Dow Jones Industrial Average saw a slight decline, dropping 13 points or 0.03%. In contrast, S&P futures gained a marginal 0.06%, and Nasdaq 100 futures rose by 0.1%.
Following the regular trading hours, Intel’s stock surged nearly 7% after the company reported third-quarter sales that surpassed analysts’ expectations. Additionally, shares of Target saw a minor uptick after the retailer revealed plans to reduce its corporate workforce by 8%, marking its first major layoffs in a decade. Other companies, including Applied Materials and Rivian, also announced job cuts.
In the preceding session, all three major U.S. indexes concluded the day with gains, largely driven by increased investment in technology stocks and optimistic sentiment as the third-quarter earnings season gained momentum. The S&P 500 climbed almost 0.6%, while the Dow Jones Industrial Average added 144 points, or about 0.3%. The Nasdaq Composite led the charge, closing 0.9% higher, bolstered by strong performances from key AI stocks like Nvidia and Oracle.
Investor attention is now focused on the upcoming release of the September consumer price index (CPI) report, an event that many believe could significantly influence market direction, especially against the backdrop of an ongoing U.S. government shutdown that has limited data availability. Observers are keen to gauge whether inflation is easing or intensifying, and whether tariffs are impacting consumer prices.
Originally scheduled for release on October 15, the CPI report will be the last key economic indicator before the Federal Reserve’s forthcoming meeting next week. Many analysts anticipate that the Fed will lower interest rates by an additional quarter percentage point based on inflation trends.
“Markets remain cautious, as the lack of clean economic data adds uncertainty for both the Fed and investors,” commented Vishal Khanduja, head of broad markets fixed income at Morgan Stanley Investment Management. He noted that until more reliable data is available, the Federal Reserve is likely to adhere to the expectations shaped by market prices. The CPI release is expected to shed light on whether the effects of tariffs are contributing to inflation.
As of now, stocks are positioned to achieve weekly gains, with Thursday’s market performance reversing Wednesday’s declines. The S&P 500 is currently on track for a 1.1% weekly gain, while the Nasdaq and the Dow are both up by nearly 1.2% for the week.
