Cooler-than-expected US consumer inflation boosts market sentiment

A lower-than-expected US inflation report for September gave optimism to markets. Traders are now betting The Federal Reserve will almost certainly cut rates at its October meeting – later this week – as well as at its December meeting.

Major US indices rose on Friday and were in the green for a second week in a row S&P 500, Nasdaq Composite And Dow Jones Industrial Average All up about 2% for the week.

The inflation report provides additional support to markets already buoyed by a strong earnings season. Of the companies reported so far, 87% managed to exceed Wall Street expectationsAccording to LSEG, that’s much higher than the typical 67% beat rate. If this week’s big tech earnings beat the top estimates — and provide encouraging guidance — markets could see new highs.

US President Donald Trump’s charges, however, still have chilly overhangs amid warm sentiments. Trump slapped an additional 10% tariff on Canada on Saturday as punishment over an ad.

Economists are warning that tariffs will increase prices. Indeed, while the Consumer Price Index report came in below estimates, September’s headline annual rate rose more than 3%. 2.9% of last month.

“Inflation may not slow down but it is not surprising to see a rise now,” he said David Russell, global head of market strategy at TradeStation.

Due to the lack of other data, such as the jobs report, due to the US government shutdown, we don’t have the full picture of how the economy is performing – so market growth could be balanced on an uncertain path.

Trump hits Canada with 10% additional tariffs. This brings General duty on Canada 45%. Ontario said it would stop its ad criticizing Ronald Reagan’s tariffs — after the first two games of the World Series — which angered Trump.

Trade developments at the ASEAN Summit. Top US and Chinese officials met on Sunday, as a result “A very successful framework” For talks between Trump and Xi, according to US Treasury Secretary Scott Besant. Trump announced Agreements with four Southeast Asian countries.

US inflation rose less than expected. The Consumer Price Index for September It came in at 0.3% for the month, keeping the annualized rate at 3%. Both figures were 0.1 percent lower than the 0.4% and 3.1%, respectively, expected by a Dow Jones survey of economists.

Stocks rose on CPI report. Major indices rose on FridayThe Dow Jones Industrial Average closed above 47,000 for the first time. Pan-European Stocks 600 0.23% added, Restoring previous losses. US stock futures rose on Sunday Stateside in the evening.

(PRO) Earnings packed week and meetings ahead. This week, five of the grand seven groups of stocks – all but Tesla And Nvidia — reporting their economic results, the US Federal Reserve will convene and A meeting with Trump may finally happen.

Trump will meet China’s Xi for the first time in his second term as a trade deal remains elusive

White House Press Secretary Carolyn Levitt told reporters Trump is scheduled to meet his Chinese counterpart Xi Jinping on October 30 on the back of last week’s Asia-Pacific Economic Cooperation, or APEC, summit.

This will be the first in-person meeting between the two heads of state since Trump returned to office in January. A high-stakes meeting looms as the fragile trade embargo between the economic superpowers expires on November 10 if they fail to agree on a second extension.

– Annie Bao