Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Oct. 22, 2025.
Brendan McDermid | Reuters
Stock futures rose early Friday ahead of a key inflation print that may dictate how many more times the Federal Reserve cuts rates this year.
Futures tied to the Dow Jones Industrial Average added 51 points, or 0.1%. S&P futures gained 0.3%, while Nasdaq 100 futures added 0.5%.
Stock futures largely ignored a proclamation from President Donald Trump that he was ending trade negotiations with Canada because of an advertisement used by Ontario featuring President Ronald Reagan.
Investors are awaiting Friday’s release of the September consumer price index report, which has grown in importance given the lack of federal data being released amid the ongoing U.S. government shutdown. The CPI, which was supposed to be released Oct. 15, will be the last economic reading before the Federal Reserve’s October meeting next week.
Economists expect the CPI for September came in at a 3.1% annual rate, or 0.2 percentage point higher than the August level, per Dow Jones estimates. Excluding food and energy, core CPI is projected to show a 3.1% annual rate, the same as August.
Traders are betting an in-line or lighter CPI will pave the way for the Fed to cut rates at its two remaining meetings this year. A hot print could throw off that bull case and hit markets.
“Markets remain cautious, as the lack of clean economic data adds uncertainty for both the Fed and investors,” said Vishal Khanduja, head of broad markets fixed income at Morgan Stanley Investment Management. “Until more reliable data emerges, the Fed is likely to adhere to market-priced expectations, though Friday’s CPI should provide greater clarity. The impact of tariffs creeping into inflation will be key.”
Intel shares popped 9% in early trading after the chipmaker reported third-quarter sales that exceeded analysts’ estimates. Target shares rose marginally after the retailer announced it would slash its corporate workforce by 8%, marking its first major layoff in a decade.
The three major U.S. indexes ended the previous session higher, driven by inflows into tech stocks and bullish sentiment heading into the heat of third-quarter earnings season. The S&P 500 rose nearly 0.6%, while the Dow Jones Industrial Average gained 144 points, or 0.3%. The tech-heavy Nasdaq Composite outperformed, closing the day 0.9% higher as heavyweight AI stocks such as Nvidia and Oracle got a boost.
Stocks are on pace to notch weekly gains, after Thursday’s moves erased Wednesday’s losses. The S&P 500 is tracking for a 1.1% gain, while the Nasdaq and the 30-stock Dow are up nearly 1.2% week to date.
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