U.S. stocks remained largely stable in early trading on Friday, positioning the major indexes to close the week near record highs as investors await next week’s interest rate decision from the Federal Reserve.
As of Friday morning, the Dow Jones Industrial Average saw a slight decline of approximately 0.1%, while the S&P 500 traded flat. The Nasdaq Composite, known for its tech focus, edged up about 0.1%. All three indexes reached record highs on the previous day following consumer price data that aligned with Wall Street expectations, bolstering investor optimism regarding a potential interest rate cut by the Fed next week.
Market expectations suggest a near certainty that the Federal Reserve will reduce its benchmark interest rate by 25 basis points next Wednesday, a move aimed at supporting a labor market that has shown signs of instability. This decision comes amid concerns that tariffs could reignite inflation.
In individual stock movements, Microsoft (MSFT) saw a gain of about 1% following news of its agreement with OpenAI, which allows the ChatGPT developer to transition from a nonprofit to a for-profit entity. Other major tech stocks experienced mixed performance; Tesla (TSLA) increased by over 1%, while Apple (AAPL) and Amazon (AMZN) also posted slight gains. However, Nvidia (NVDA), Alphabet (GOOG), Meta Platforms (META), and Broadcom (AVGO) each fell by less than 1%.
Adobe (ADBE) experienced a decline of 1%, relinquishing earlier gains despite reporting better-than-expected quarterly results, primarily driven by strong sales of its AI-focused products. In contrast, shares of furniture maker RH (RH) dropped by 2% after it reduced its sales outlook and postponed the launch of a new product line, citing tariffs as a major factor.
Warner Bros. Discovery (WBD) witnessed a significant increase of nearly 10%, buoyed by continued gains following reports that its competitor, Paramount Skydance (PSKY), was preparing to make a takeover offer.
In the bond market, treasury yields increased, with the yield on the 10-year note rising to 4.06% from the previous 4.03%. This followed a decline in yields on Thursday, as traders anticipated that the inflation report would reaffirm expectations for a rate cut in the upcoming week.
In commodities, gold futures climbed 0.4% to $3,685 an ounce, hovering just below the all-time high reached earlier in the week. Meanwhile, West Texas Intermediate crude oil futures rose 1.4% to $63.25 a barrel, recovering from the losses experienced the day before.
Cryptocurrency markets remained vibrant, with Bitcoin trading at $115,000 after hitting an overnight peak of $116,300. The cryptocurrency has been on an upward trend throughout September, approaching its all-time high of more than $124,000 recorded in mid-August.
The U.S. dollar index, which measures the value of the dollar against a basket of foreign currencies, rose by 0.2% to 97.75.
