Stock futures rose Friday as the latest inflation data gave the market a boost and helped investors make up some ground at the end of a tough month and quarter. Futures tied to the Dow Jones Industrial Average added 186 points, or 0.6%. S&P 500 futures climbed 0.7%, while Nasdaq 100 futures gained 1%. Nike shares popped 10% in the premarket after the apparel giant reported fiscal first-quarter earnings that beat analyst expectations. Friday’s personal consumption expenditures price index reading, the Federal Reserve’s preferred inflation metric, helped perk up the market. So-called core PCE, which strips out volatile food and energy prices, rose 0.1% in August and 3.9% year over year. Economists polled by Dow Jones expected that the core PCE would advance 0.2% on a monthly basis and 3.9% year over year. Wall Street is coming off a winning session, as the benchmark 10-year Treasury yield backed off from a fresh 15-year high. Those gains, however, did little to mitigate equities’ sharp losses for the month and the quarter. The S&P 500 is set to finish the month down 4.6% and the quarter lower by 3.4%. The Nasdaq Composite is off nearly 6% in September, and down 4.3% for the quarter. This month will be the worst in 2023 for both indexes. The Dow is on track for a 3% decline this month and a 2.2% fall for the quarter. The major averages are also on pace for modest losses on the week: The S&P 500 is off about 0.5%, while the Dow is down 0.9%. The Nasdaq has seen less of a slide this week, down 0.1%. The U.S. 10-year Treasury yield fell on Friday, pulling back from a fresh 15-year high, after the Federal Reserve’s preferred inflation measure showed some signs of easing inflation. The yield on the benchmark 10-year Treasury note slipped by 5 basis points to trade at 4.547%, extending losses after hitting 4.688% on Thursday — its highest level since Oct. 15, 2007 when it yielded as much as 4.719%. The yield on the 30-year Treasury bond also dipped more than 4 basis points to 4.683%. The 2-year Treasury yield declined by 4 basis points to 5.027%. Asia-Pacific markets largely climbed in the final trading day of the week, with Hong Kong’s Hang Seng index leading gains in the region and rising 2.67% in its final hour of trade. Tokyo’s consumer price index rose 2.8% in September from a year ago, softening from the 2.9% gain in August. The core inflation rate, which strips out prices of fresh food, came in at 2.5%, lower than the 2.6% expected by a Reuters poll. Japan also saw unemployment, industrial output and retail sales data for August. Japan’s Nikkei 225 fell marginally, extending losses from Thursday to finish at 31,857.62, while the Topix dropped 0.94% and closed at 2,323.29. In Australia, the S&P/ASX 200 advanced 0.34% to end at 7,048.6, rebounding after a three-day losing streak. South Korean and mainland Chinese markets are closed for a holiday. Oil prices edged higher on Friday, and were headed for a gain of more than 2% for the week, driven by tight U.S. supply and expectations of strong fuel demand in China during the Golden Week holiday. Front-month Brent November futures were up 77 cents, or 0.8%, to $96.15 per barrel, ahead of the contract’s expiry later in the day. The more-liquid Brent December contract was up 54 cents, or 0.6%, at $93.65 per barrel. U.S. West Texas Intermediate crude (WTI) gained 86 cents, or 0.9%, to $92.57 per barrel. Brent futures touched their highest since November 2022 on Thursday, hitting an intra-day peak of $97.69 a barrel. Meanwhile, WTI hit its highest intra-day price since August last year at $95.03 a barrel. Gold prices rose on Friday as a rally in U.S. dollar and Treasury yields stalled, but was on track for monthly and quarterly declines on increased hopes that the U.S. Federal Reserve would keep interest rates higher for longer. Spot gold rose 0.4% to $1,872.20 per ounce by 1030 GMT. U.S. gold futures gained 0.6% to $1,889.80.
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