Core consumer prices, which exclude food and energy, also rose by a modest 0.2% month-on-month and 3.0% annually, both softer than forecast. Within minutes of the data's release, Wall Street futures surged: the Dow Jones climbed 0.53%, the S&P 500 gained 0.77%, and the Nasdaq 100 advanced 1.03%. For traders anxious about the Federal Reserve's next move, this was welcome news. A gentler inflation reading strengthens the case for a rate cut as early as next week, signaling that the central bank's long campaign against rising prices may finally be yielding results.

Yet the victory is partial. The figures suggest progress, not resolution. Prices are no longer accelerating, but they remain above the Fed's 2% target, leaving policymakers little room for complacency. The data come amid a fog of incomplete information, with much of the federal government still shuttered and key statistics delayed. Without a full view of the labor market and consumer spending, the Fed must decide whether to ease policy based on limited evidence. Its choices will shape not only the cost of borrowing but also the fragile confidence now underpinning markets. Investors have priced in a 25-basis-point reduction, betting that a dovish Fed will prioritize growth over restraint. 

Wall Street continues to move in step with corporate earnings results. Major indexes edged higher, buoyed by a standout performance from Intel, whose earnings exceeded expectations and reignited hopes for resilience in American industry. The company recorded an 8% jump in premarket trading.

All eyes are on the so-called "Magnificent Seven", which continue to carry disproportionate weight in shaping both investor psychology and index performance. Their earnings are not merely company results, they are economic events. As five of these firms, including Apple and Microsoft, prepare to report next week, investors are bracing for data that could either validate or puncture the current tech-driven optimism.

Meanwhile, politics continues to intrude on markets. The White House's announcement that President Donald Trump will meet China's Xi Jinping next week offered a rare moment of relief. Investors are desperate for signs of détente after months of tariff threats and export restrictions. The upcoming encounter, set amid the Asia-Pacific Economic Cooperation summit, is being cast as a potential turning point in U.S.–China relations. Yet optimism is tempered by experience. Similar "breakthrough moments" in trade diplomacy have often dissolved into renewed confrontation once the cameras stop rolling.

Trump's abrupt termination of trade talks with Canada - a reaction to a political advertisement involving Ronald Reagan's voice - underscores how impulsive politics now routinely derails economic strategy. America's trading partners, long accustomed to erratic behavior from Washington, have begun to hedge accordingly. The result is a global economy increasingly defined by transactional nationalism rather than cooperative order.

Even abroad, monetary uncertainty prevails. Japan's new prime minister, Sanae Takaichi, faces inflation above the Bank of Japan's 2% target and rising pressure for a rate hike, even as her government considers a fiscal stimulus. The contrast with America is telling. Where Washington's policymakers struggle to justify easing, Tokyo must explain why it should tighten. Both, however, face the same dilemma: how to sustain growth in a world where fiscal tools are constrained and political tempers are short.

In Asia-Pacific, Australia and India lost a few points, but gains were substantial in Japan (+1.3%) and South Korea (+2.6%). China, which had started strongly, lost some of its gains during the session. Europe is mixed, with the Stoxx Europe 600 down 0.2%.

Today's economic highlights:

Today's agenda includes: Japan's PMIs, followed by those of France, Germany, the Eurozone, and the United Kingdom; In the United States, with PMIs, new home sales, and the University of Michigan sentiment. See the full calendar here.

  • Dollar index: 99,010
  • Gold: $4,062
  • Crude Oil (BRENT): $65.02 (WTI) $61.72
  • United States 10 years: 4%
  • BITCOIN: US$111,360

In corporate news:

  • Dr Reddy's missed Q2 profit expectations due to rising costs and intense competition in North America for its generic version of Bristol-Myers Squibb's cancer drug Revlimid.
  • Procter & Gamble beat Q1 estimates with a 3% sales rise to $22.4 billion and adjusted EPS of $1.99, while halving its tariff cost forecast for the fiscal year.
  • Biogen licensed an oral C5ar1 antagonist from Vanqua Bio, paying $70 million upfront and up to $990 million in milestones to boost its immunology pipeline.
  • Microsoft unveiled a more advanced Copilot Mode in its Edge browser, capable of analyzing tabs and performing user actions, while also expanding AI capabilities through new services and acquisitions with OpenAI.
  • Merck announced it will present major cardiopulmonary trial data at the upcoming AHA 2025 conference, including Phase III results for its PCSK9 inhibitor and sotatercept-based treatments, and also received FDA priority review for two Keytruda combination therapies for bladder cancer.
  • General Dynamics posted an 11% rise in Q3 revenue to $12.91 billion, driven by a 30% surge in business jet demand, beating both revenue and EPS forecasts.
  • HCA Healthcare raised its full-year profit forecast after Q3 adjusted EPS beat estimates, citing strong demand for medical services ahead of expected 2026 insurance changes.
  • Eli Lilly reported positive Phase 3 data for lebrikizumab in eczema and baricitinib in adolescent alopecia areata, both showing durable efficacy and consistent safety profiles.
  • Mondelez is using a generative AI tool co-developed with Accenture to cut marketing costs by 30–50%, with plans to scale its use across major brands globally.
  • JP Morgan plans to allow institutional clients to use bitcoin and ether as collateral for global loans by year-end, expanding crypto integration into traditional finance.
  • The EU Commission issued preliminary findings that Meta (Facebook, Instagram) and TikTok breached the Digital Services Act by limiting researchers' data access and complicating illegal content reporting, potentially facing fines up to 6% of annual revenue.
  • Match Group warned that Apple's 30% fee policy threatens its growth in India and urged the antitrust regulator to impose fines for anti-competitive practices on iOS.
  • Ford is ramping up production of F-150 and Super Duty trucks despite lowering its annual guidance.
  • Intel drove the U.S. stock market higher with strong Q3 earnings fueled by AI demand.
  • Amazon is facing leadership changes in its device division and is expanding career development programs.
  • Pershing Square Holdings announced the pricing of its $500 million senior notes offering.
  • Oakworth Capital reported robust Q3 2025 growth with a 22% increase in diluted EPS.
  • Blackstone invested $705 million to acquire a 9.99% stake in Federal Bank.

Analyst Recommendations:

  • Appfolio, Inc.: Keefe Bruyette & Woods upgrades to outperform from market perform with a target price of USD 311.
  • Coinbase Global, Inc.: JP Morgan upgrades to overweight from neutral with a price target raised from USD 342 to USD 404.
  • Inspire Medical Systems, Inc.: Jefferies downgrades to hold from buy and reduces the target price from USD 160 to USD 85.
  • Molina Healthcare, Inc.: Barclays downgrades to underweight from equalweight and reduces the target price from USD 185 to USD 144.
  • Snap Inc.: Stifel downgrades to sell from hold and reduces the target price from USD 8 to USD 6.50.
  • The Travelers Companies, Inc.: Zacks upgrades to outperform from neutral with a price target raised from USD 275 to USD 310.
  • Tractor Supply Company: Morgan Stanley upgrades to market weight from underweight and raises the target price from USD 50 to USD 60.
  • United Bankshares, Inc.: Piper Sandler & Co upgrades to overweight from neutral and raises the target price from USD 40 to USD 42.50.
  • Alphabet Inc.: Loop Capital Markets maintains its hold recommendation and raises the target price from USD 190 to USD 260.
  • Amkor Technology, Inc.: B Riley Securities Inc. maintains its neutral recommendation and raises the target price from USD 24 to USD 29.
  • Brunswick Corporation: BNP Paribas Exane maintains its neutral recommendation and raises the target price from USD 53 to USD 72.
  • Coreweave, Inc.: HSBC maintains its reduce recommendation and raises the target price from USD 32 to USD 44.
  • Deckers Outdoor Corporation: Truist Securities maintains its buy recommendation and reduces the target price from USD 145 to USD 105.
  • Intel Corporation: Bernstein maintains its market perform recommendation and raises the target price from USD 21 to USD 35.
  • Medpace Holdings, Inc.: Baird maintains its neutral recommendation and raises the target price from USD 491 to USD 613.
  • Nextracker Inc.: Baird maintains its outperform recommendation and raises the target price from USD 87 to USD 110.
  • Robert Half Inc.: Jefferies maintains its underperform recommendation and reduces the target price from USD 35 to USD 25.
  • Tesla, Inc.: DZ Bank AG Research maintains its sell recommendation and raises the target price from USD 190 to USD 250.