CNBC Daily Open: Cooler-than-expected U.S. consumer inflation adds to market cheer

A tamer-than-expected U.S. ostentation study for September injected optimism into markets. Traders are present betting that the Federal Reserve volition astir surely chopped rates astatine its October gathering — scheduled for aboriginal this week — arsenic good arsenic astatine its December gathering.

Major U.S. indexes climbed Friday and had their 2nd consecutive week successful the green, with the S&P 500, Nasdaq Composite and the Dow Jones Industrial Average each up astir 2% for the week.

The ostentation study offers further enactment to markets already buoyed by a beardown net season. Of the companies that person reported truthful far, 87% managed to transcend Wall Street's expectations, overmuch higher than the emblematic 67% bushed rate, according to LSEG. If Big Tech net this week apical estimates — and supply upbeat guidance — markets could spot caller highs.

U.S. President Donald Trump's tariffs, however, are inactive a chilly overhang amid the lukewarm sentiment. Trump connected Saturday deed Canada with an further 10% tariff, arsenic punishment implicit an ad.

Economists person been informing that tariffs volition pb to higher prices. Indeed, portion the user terms scale study came successful beneath estimates, September's header yearly complaint roseate to 3% from the previous month's 2.9%.

"Inflation mightiness not beryllium slowing but it's not astonishing to the upside anymore," said David Russell, planetary caput of marketplace strategy astatine TradeStation.

With the deficiency of different data, specified arsenic the jobs report, due to the fact that of the U.S. authorities shutdown, we don't person the afloat representation of however the system is performing — truthful the emergence successful markets could beryllium balanced connected a precarious ledge.

Trump hits Canada with an other 10% tariff. This brings general duties connected Canada to 45%. Ontario said it would halt its advertisement featuring Ronald Regan criticizing tariffs — which incensed Trump — aft the archetypal 2 games of the World Series.

Trade developments astatine the ASEAN Summit. Top U.S. and China officials met Sunday, resulting successful "a precise palmy framework" for talks betwixt Trump and Xi, according to U.S. Treasury Scott Bessent. Trump announced agreements with 4 Southeast Asian countries.

U.S. ostentation roseate little than expected. The consumer terms scale for September came successful astatine 0.3% for the month, putting the yearly complaint astatine 3%. Both figures were 0.1 percent points little than the 0.4% and 3.1%, respectively, expected by a Dow Jones survey of economists.

Stocks emergence connected CPI report. Major indexes climbed Friday, with the Dow Jones Industrial Average closing supra 47,000 for the archetypal time. The pan-European Stoxx 600 added 0.23%, reversing earlier losses. U.S. banal futures roseate Sunday evening stateside.

[PRO] Packed week of net and meetings ahead. This week, 5 of the Magnificent Seven radical of stocks — each but Tesla and Nvidia — volition beryllium reporting their fiscal results, the U.S. Federal Reserve volition convene and the Trump-Xi gathering could yet happen.

Trump to conscionable China's Xi for the archetypal clip successful 2nd word arsenic commercialized woody remains elusive

White House property caput Karoline Leavitt told reporters last week that Trump volition conscionable his Chinese counterpart Xi Jinping connected Oct. 30 connected the sidelines of the Asia-Pacific Economic Cooperation, oregon APEC, Summit.

It volition beryllium the archetypal in-person gathering betwixt the 2 heads of states since Trump returned to the bureau successful January. The high-stakes gathering comes arsenic a delicate commercialized detente betwixt the economical superpowers nears its expiration connected Nov. 10 if they neglect to hold connected different extension.

— Anniek Bao