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postUS stocks moved higher on Friday as AI demand signals boosted some stocks and data-starved investors got a read on American consumer sentiment amid the ongoing government shutdown.
The Dow Jones Industrial Average (^DJI) added 0.3%, while the S&P 500 (^GSPC) nudged up around 0.1% and the tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
Markets have had an uncertain week, pulled in different directions by AI demand hopes and US government shutdown worries. The S&P 500 and Nasdaq looked set for small weekly wins on Friday despite retreating from record highs during the previous trading session, while the Dow eyed a decline.
Optimism for AI demand got a boost on Friday as data center developer Applied Digital (APLD) posted a quarterly revenue beat, fueling a 30% surge in the stock. The move helped lift some AI infrastructure-linked stocks, with fellow data center developer CoreWeave (CRWV) adding 4% and chipmaker Nvidia (NVDA) moving up to build on the previous day’s all-time high — even as China cracked down on its chips.
Meanwhile, private data was in focus for investors as the release of official economic data has been delayed due to the US government shutdown, which entered its 10th day. The University of Michigan’s reading on consumer sentiment in October, released Friday morning, showed Americans feeling slightly better about the economy than expected.
In the meantime, the Bureau of Labor Statistics said it recalled furloughed staff to prepare the September edition of the Consumer Price Index — a key indicator of inflation — for release by the end of October, Bloomberg reported. The CPI update was originally scheduled to be released next week, on Oct. 15.
Elsewhere, gold (GC=F) rose to above $4,000 an ounce, recovering from a dip in earlier morning trade to return to rally mode. The hunt for havens also lifted silver (SI=F), which jumped for a second day as it continued to outpace gold’s gains.
Looking ahead, investors are counting down for earnings season to start in earnest next week, led by JPMorgan (JPM) and Citigroup (C). Performance is expected to be softer, with analysts betting tariffs will bite into revenue for the quarter.
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Consumer sentiment remains stable in October
Consumer sentiment was relatively unchanged in October.
The University of Michigan’s preliminary survey of consumer sentiment released Friday showed the headline consumer sentiment index came in at 55 for the month so far, above the 54 projected by economists polled by Bloomberg but a hair below the reading of 55.1 in September.
Still, consumer sentiment for the month fell far below the 70.5 reading in October 2024.
The October data also showed year-ahead inflation expectations dropped to 4.6% during the month from 4.7% the previous month. Economists had expected the figure to remain unchanged.
Long-term inflation expectations for the next five to 10 years remained steady at 3.7% as projected.
In September, survey results had shown consumers feeling worse about the economy than expected as they worried about the impact of Trump’s tariffs.
Joanne Hsu, the director of UMichigan’s consumer surveys, said of the fresh data Friday: “Pocketbook issues like high prices and weakening job prospects remain at the forefront of consumers’ minds.”
The latest look at consumer sentiment comes amid an ongoing US government shutdown, which has delayed the release of crucial federal data investors use to gauge the health of the economy.
Hsu said UMichigan’s data for the month to date has shown “little evidence that the ongoing federal government shutdown has moved consumers’ views of the economy thus far.”
Read more here.
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Stocks creep higher at the open
US stocks inched higher on Friday at the market open.
The Dow Jones Industrial Average (^DJI) moved up more than 0.2%, while the S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) nudged up over 0.1%.
The slight gains come after the Nasdaq and S&P 500 retreated from record highs Thursday amid an ongoing US government shutdown. The two major gauges were set for weekly gains Friday morning, while the Dow was on track for a weekly loss.
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Delta’s premium play pays off
The key takeaway from Delta’s (DAL) strong performance this quarter is that it pays to go premium. The airline’s stock rose 0.5% in premarket trading on Friday after popping more than 4% on the heels of its earnings release on Thursday.
As Yahoo Finance’s Hamza Shaban writes in today’s Morning Brief newsletter:
Read more here.
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Chart: About 90% of public fixed income has yields below 5%
Apollo Global chief economist Torsten Sløk pointed out in a note on Friday that almost 90% of public fixed income worldwide is trading at a yield below 5%. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)
“With inflation at 3%, the real return for investors in public fixed income is a meager 2% or less,” Sløk wrote.
US Treasury yields fell on Friday as the government shutdown delayed economic data that might otherwise move bond prices. The 10-year yield (^TNX) declined by 5 basis points to 4.09%. The 30-year yield (^TYX) dropped to 4.67%.
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: Intel, Elastic, and American Homes 4 Rent
Here’s a look at some of the top stocks trending in premarket trading:
Intel (INTC) stock rose almost 2% before the bell on Friday. Intel unveiled its new Core Ultra series 3 processor on Thursday, the first chip built on its 18A process technology and manufactured at the new Fab 52 plant.
Elastic (ESTC) stock rose 10% in premarket trading on Friday. Bank of America (BAC) recently cut their price target for Elastic, citing tougher competition for AI workloads, which could crimp growth.
American Homes 4 Rent (AMH) shares rose 9% before the bell. Over the past month, its share price has fallen 6% and is down 13% year-to-date.
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Qualcomm stock falls as China launch antitrust probe
Qualcomm (QCOM) stock fell more than 3% before the bell on Friday following news that China has launched an antitrust investigation into the US chipmaker over its acquisition of Israel’s Autotalks.
Reuters reports:
Read more here.
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Applied Digital stock soars after revenue beat, CoreWeave deal
Shares in Applied Digital surged around 25% before the bell after the data center developer’s quarterly revenue outdid Wall Street expectations.
A new deal with cloud company CoreWeave (CRWV) also buoyed hopes that the AI buildout will fuel more demand for Applied Digital.
Reuters reports:
Read more here.
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Levi Strauss’s boosted FY profit outlook fails to meet the mark
Levi Strauss (LEVI) lifted its full-year profit forecast on Thursday, but the outlook fell short of Wall Street expectations.
Shares in the denim maker sank almost 7% in premarket as the impact of US tariffs weighed on prospects, even as the company posted a third quarter revenue beat.
Reuters reports:
Read more here.
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Oil drops as Gaza ceasefire leads to positive outlook for supply
Bloomberg reports:
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