US stocks closed at a new high on Friday, as traders cheered softer-than-anticipated inflation data that underpinned expectations for Federal Reserve interest-rate cuts. Technology giants including Nvidia Corp, Apple Inc and Broadcom Inc led gains in the S&P 500 Index.
The benchmark rose 0.8 per cent, helped by advances in six of 11 sectors in the index, led by technology and utilities. The Nasdaq 100 Index climbed 1.0 per cent. The Bloomberg Magnificent Seven Price Return Index added 0.6 per cent.
Investor focus is now shifting toward next week’s packed earnings slate, with reports due from heavy-hitters Alphabet Inc, Meta Platforms Inc and Microsoft Corp after the close on Wednesday, and Apple Inc and Amazon.com Inc on Thursday.
“Next week is critical as the big Tech/AI names start reporting,” Citi strategist Scott Chronert wrote in a Friday note. Sales and earnings growth from the 30 per cent chunk of S&P 500 companies that have reported so far has been strong, but “the more significant test to index price action” is ahead as expectations are high, he said.
Friday trading kicked off in the green after traders received welcome news from a report showing consumer prices, excluding food and energy, rose a smaller-than-forecast 0.2 per cent in September — the slowest pace in three months.
“Today’s CPI number offered investors the first tidbit of information from the barren wasteland of government data that has existed since the shutdown started October 1,” said John Kerschner, Global Head of Securitized Products and Portfolio Manager at Janus Henderson, in emailed comments. “Investors were not disappointed.”
The CPI report was initially scheduled for October 15 but delayed due to the federal government shutdown. To Citi economist Veronica Clark, the most important detail in the data was a “substantial” slowing in shelter inflation, a trend she sees likely continuing into 2026, and which could offset “somewhat stickier” goods prices as tariffs pass through.
Elsewhere, US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng were meeting in Malaysia for trade talks, setting the stage for next week’s pivotal meeting between President Donald Trump and Chinese counterpart Xi Jinping.
On Friday, Alphabet rallied 2.7 per cent. The company will supply specialized AI chips to Anthropic in a deal worth tens of billions of dollars, helping the Google parent’s cloud business and its Tensor Processing Unit (TPU) chips.
Intel Corp pared earlier gains spurred by the chipmaker’s return to profitability and upbeat revenue forecast. The results signaled its comeback attempt — supported by investments from the White House, Nvidia Corp and Softbank Group Corp — is on track. Other chip companies climbed, with the Philadelphia Semiconductor Index advancing 1.9 per cent. Nvidia added 2.3 per cent and Broadcom rose 2.9 cent.
Ford Motor Co surged 12 per cent. The carmaker expects it will largely bounce back next year after a devastating fire hobbled a key supplier. Quarterly profit and sales beat estimates.
Palantir Technologies Inc rose 2.3 per cent. The company inked a more than $200 million deal to provide AI software to Lumen Technologies Inc in a new partnership, part of a push by the telecom company to support more AI services, and a bid by Palantir to reach more customers.
Fannie Mae slumps, Coinbase jumps
Common shares of mortgage-finance giant Fannie Mae slipped 5 per cent. Earlier this week, the company appointed a new acting CEO.
“This management change confirms our view that a recap and release of Fannie Mae and Freddie Mac is unlikely to occur in the coming months,” TD Cowen’s Jaret Seiberg wrote in a note this morning, adding that investors will probably want a permanent CEO with a business plan before committing fresh capital.
Cryptocurrency-linked stocks like Coinbase Global Inc — which jumped 9.8 per cent, the most since late June — advanced. JPMorgan Chase & Co plans to allow institutional clients to use Bitcoin and Ether holdings as collateral for loans, a significant deepening of Wall Street’s crypto integration. Bitcoin rose 1 per cent to $110,741.
Meanwhile, crypto miner TeraWulf Inc completed a debt deal to expand a data center, in the biggest junk bond sale led by one Wall Street institution — in this case, Morgan Stanley — since the acquisition of RJR Nabisco in 1989.
In retail, Deckers Outdoor Corp sank 15 per cent after a disappointing sales forecast from the Ugg and Hoka brands owner. Target Corp was little changed. The retail chain is cutting about 8 per cent of its headquarters team, spanning 1,800 roles, in its first major restructuring in years.
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