US Stock Market Today: Wall Street gains as PCE inflation bolsters rate cut hopes

Wall Street key indices gained on Friday as the dated reading of the Federal Reserve’s preferred inflation gauge boosted interest rate-cut bets.

According to official data, the Personal Consumption Expenditures (PCE) price index data, delayed by the 43-day US government shutdown, rose to 2.8% in September on an annual basis.

On monthly basis, the PCE price index rose from 2.7% in August.

Next week, Fed policymakers are set to spar over whether to cut interest rate despite stubborn price pressures and a still-resilient labor market.

Investors expect a rate cut by the Fed, with bets pointing to further easing into 2026.

At 10:07 a.m. ET, the Dow Jones Industrial Average rose 236.46 points, or 0.49%, to 48,087.63, the S&P 500 gained 31.44 points, or 0.46%, to 6,888.56 and the Nasdaq Composite gained 131.27 points, or 0.56%, to 23,636.41.

At the opening bell, the Dow Jones Industrial Average rose 28.7 points, or 0.06%, to 47,879.6. The S&P 500 rose 9.2 points, or 0.13%, to 6,866.32, while the Nasdaq Composite rose 62.6 points, or 0.27%, to 23,567.77.

Treasuries are on track for their worst week since June. The 10-year Treasury yield rose 1 basis point to 4.11%.

Key Stock Movers

Warner Bros Discovery stock surged 3.10% after Netflix Inc. said it has agreed to acquire the film and television studios, alongside the streaming division, of WBD in a deal worth $72 billion. Netflix shares fell 0.20%.

Paramount Skydance, which earlier had been seen as a front-runner to buy Warner Bros., fell 6.1%.

Hewlett Packard Enterprise stock fell 1% after the firm forecast first quarter revenue below estimates.

Shares of Oklo tanked 6.3% after the nuclear technology firm unveiled a planned $1.5 billion share sale.

Cooper Companies soared 8.3% after the medical device maker said it is initiating a formal strategic review aimed at identifying opportunities to enhance long-term shareholder value.

Ulta Beauty stock jumped 14% after the retailer reported stronger quarterly profit and revenue.

SoFi Technologies shares fell 6.3% after the financial technology company said it would add $1.5 billion worth of its stock into the market in order to raise cash.

Bullion Market

Gold prices surged on Friday on hopes that the Federal Reserve will reduce interest rates next week.

As of 1416 GMT, spot gold rose 0.7% to $4,235.59 per ounce. US gold futures for February delivery edged 0.6% higher to $4,266.50 per ounce.

Elsewhere, silver rose 2.2% to $58.34 an ounce, platinum fell 0.4% to $1,640.23, and palladium gained 1.2% to $1,465.29.