CNBC Daily Open: U.S. consumer inflation data catalyzes stock rally

A tamer-than-expected U.S. ostentation report 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 top 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 hit 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.

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.

China's concern profits surge successful September. They rose 21.6% from a twelvemonth ago, helped by Beijing's efforts to rein successful a terms warfare among manufacturers. The maturation successful profits was the largest since November 2023, and extends August's summation of 20.4% twelvemonth connected year.

HSBC volition admit a $1.1 cardinal provision. The slope mislaid portion of a tribunal entreaty linked to Bernard Madoff's fraud scheme, but said it would prosecute a 2nd appeal. The $1.1 cardinal proviso volition beryllium included successful its third-quarter results, retired Tuesday.

Stocks emergence connected CPI report. Major U.S. indexes climbed Friday, with the Dow Jones Industrial Average closing supra 47,000 for the archetypal time. U.S. banal futures roseate Sunday evening stateside. Asia-Pacific markets precocious Monday, with Japan's Nikkei 225 breaking the 50,000 level for the archetypal time.

[PRO] Don't place Asian equities, UBS says. While the U.S. banal marketplace has been charging forward, investors should see adding Asian stocks, bonds and gold to their portfolio for diversification, the Swiss slope said successful a Friday note.

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