US stocks showed a strong opening on Friday, with Wall Street digesting new readings on the Federal Reserve's preferred inflation indicator that could affect interest rate expectations.
S&P 500 and Dow Jones Industrial Average stock futures each rose by about 0.7%. Contracts on the tech-heavy Nasdaq 100 led gains of nearly 1%, with all three markers trying to add to Thursday's gains.
Stocks returned to strong gains for the month and quarter as they entered the final trading day of September. The main index faces a decline of 3% to 5% for the month, driven by a sharp rise in oil prices and fears that the Fed's high rate strategy means another hike this year.
The bond market also recorded positive readings after comments from Fed officials helped ease rate concerns. The 10-year US Bond market slumped after reaching levels not seen in more than 15 years.
Today Traders turn to the focus of Friday's Personal Consumption Expenditures (PCE) data, which is the Fed's preferred inflation indicator. August data showed “core” PCE – which excludes food and energy factors – rose 3.9% this year, the lowest since September 2021 and down from 4.2% in July. The decline is likely to dampen expectations that the Fed will raise interest rates in November.
On the other hand, market players also expressed concern about the US government shutdown. This is because this matter can have a significant impact on the economy and the stock market.
The US dollar index, which measures the US dollar against six major currencies, traded slightly firmer despite a 0.30% decline at a trading level of 105.597.
