The major index futures indicate a higher opening on Friday, suggesting that stocks are poised to continue the upward trajectory observed in the prior session. The futures rose after the publication of a significant Labor Department report indicating that consumer prices in the U.S. experienced a modest increase, falling slightly short of expectations for September. The Labor Department reported that the consumer price index increased by 0.3 percent in September, following a rise of 0.4 percent in August, while analysts had anticipated a 0.4 percent increase. The annual rate of growth in consumer prices increased to 3.0 percent in September, up from 2.9 percent in August, although this was below the anticipated rise of 3.1 percent. The core consumer price index, which excludes food and energy prices, increased by 0.2 percent in September, following a 0.3 percent rise in August, slightly below projections.
The relatively subdued inflation figures are expected to bolster confidence that the Federal Reserve will persist in reducing interest rates in the forthcoming months. Early buying interest may also be generated in reaction to upbeat earnings news from big-name companies like Intel, whose shares are experiencing a notable increase of 6.0 percent in pre-market trading following third-quarter sales that exceeded expectations. Auto giant saw a 3.6 percent increase in pre-market trading following strong third-quarter results, while Procter & Gamble demonstrated significant pre-market strength after fiscal first-quarter results surpassed expectations. Following the weakness observed in Wednesday’s session, stocks rebounded during Thursday’s trading activities, with the major averages experiencing an upward movement throughout the day. The Nasdaq increased by 201.40 points, or 0.9 percent, reaching 22,941.80, the S&P 500 rose by 39.04 points, or 0.6 percent, to 6,738.44, and the Dow gained 144.20 points, or 0.3 percent, closing at 46,734.61.
Energy stocks exhibited considerable strength as crude oil surged following the announcement of U.S. sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, citing Russia’s insufficient commitment to a peace process in Ukraine. President Trump expressed optimism regarding a potential resolution of the Russia-Ukraine conflict but subsequently canceled a scheduled meeting with Russian President Vladimir Putin. The robust performance in the energy sector lifted the Philadelphia Oil Service Index by 4.8 percent and the NYSE Arca Oil Index by 3.0 percent. The computer hardware sector also showed strength, with the NYSE Arca Computer Hardware Index rising 4.0 percent, led by SanDisk, which soared 13.7 percent to a record closing high. Networking, semiconductor, and steel stocks performed well, whereas transportation stocks experienced a notable decline.
The strength emerged as markets dismissed initial negative responses to corporate earnings announcements from Tesla and IBM. Tesla rebounded 2.3 percent despite reporting third-quarter earnings below expectations, while IBM declined 0.8 percent but remained significantly above its lows, even after reporting strong third-quarter earnings amid slower growth in its cloud computing segment. Honeywell surged 6.8 percent following better-than-expected third-quarter results. In U.S. economic news, the National Association of Realtors reported that existing home sales increased 1.5 percent in September to an annual rate of 4.06 million, following a slight 0.2 percent decline in August, aligning with economist estimates.