Nasdaq 100 futures fell 0.2% early Friday while S&P 500 and Dow futures edged up less than 0.1% ahead of the October Producer Price Index release.
Cerebras surged 18% premarket on strong third-quarter results and a Microsoft partnership, and Modine jumped 22% on a report Samsung is in talks to acquire it.
October headline CPI rose 0.4% month on month versus 0.3% expected and core CPI rose 0.3% versus 0.2% expected, shifting rate expectations hawkishly.
Pricing shows 28 basis points of Fed hikes by year-end, including an 88% probability of a 25 basis point hike at the next meeting.
Nvidia fell 4.3% on Thursday amid fallout from CEO Jensen Huang's resignation, with CFO Colette Kress stepping into the role.
Cerebras Systems shares are surging 18% in premarket action after the chipmaker delivered strong third-quarter results and reported a partnership with Microsoft. Modine Manufacturing shares are jumping 22% after a report that Samsung Electronics is in discussions to acquire the maker of data center cooling systems. Strategy shares are down 2% near a three-month low and Coinbase Global is slipping more than 2% as bitcoin slides, while Cisco Systems and Applied Materials are set to open down 2% and barely changed respectively after earnings late Thursday.
Markets have repriced rate expectations more hawkishly after Fed Governor Waller's remarks and hotter-than-expected US inflation data. Pricing shows 28 basis points of Fed hikes by year-end, including an 88% probability of a 25 basis point hike at the next meeting, and 88 basis points through 2027. October headline CPI rose 0.4% month on month versus 0.3% expected, while core CPI rose 0.3% versus 0.2% expected.
Nasdaq 100 futures fell 0.2% early Friday while S&P 500 and Dow futures both edged up less than 0.1%, ahead of the October Producer Price Index release at 8:30 a.m. Eastern time. Through Thursday's close, the Nasdaq was up 3.2% on the week, the S&P 500 2.9% and the Dow 2.0%. Nvidia shares fell 4.3% on Thursday amid fallout from CEO Jensen Huang's resignation, with CFO Colette Kress stepping into the role.
Nvidia shares tumbled 7% after the New York Times reported that CEO Jensen Huang had an affair with one of Nvidia's vice presidents who reports directly to him, following reports about a relationship with an alleged operative recruited by the Chinese government. The Wall Street Journal reported that Nvidia's board is being scrambled to decide whether Huang would be ousted for workplace misconduct, and the probability of his departure before 2026-end on prediction market Kalshi spiked from 20% to over 50%. Earlier in the session the S&P 500 rose 1.3% and the Nasdaq Composite rose 1.6%.
Chicago Fed President Goolsbee said inflation has been well above target and that it is worth being "sober minded" about inflation and the Fed's response, adding that AI investment looks like a form of stimulus. He noted the market is pricing in 87 basis points of hikes in the year ahead. October headline prices rose 0.4% and core prices rose 0.3% for a third straight month, while Fed Governor Waller said he would consider voting for 50 basis points in December and Dallas Fed President Logan wants at least two more hikes.
A rebound in artificial intelligence stocks lifted the US market, with the S&P 500 rising 1.3% and pulling within 2.6% of its all-time high set last month. The Nasdaq composite rallied 1.6% and the Dow Jones Industrial Average added 254 points, or 0.5%. CoreWeave leaped 24.7% after showing it lost less money during the summer than analysts expected, and CEO Michael Intrator said the company has roughly $9 billion in customer prepayments and deposits expected in the next three months.
Nvidia stock sank 5% as Chief Executive Officer Jensen Huang was ousted, with the board counting on Colette Kress as interim CEO. Super Micro Computer shares fell 13% after Semafor reported that the Department of Justice is probing the company along with Nvidia and Megaspeed. Cisco Systems jumped after the close as its fiscal first quarter showed its strongest revenue and earnings growth in more than 15 years, with adjusted earnings per share of $1.40 versus $1 a year ago and revenue up 24% to $18.52 billion; it raised adjusted EPS guidance to between $5.47 and $5.53 for fiscal 2027 on revenue of $74.8 billion to $75.8 billion.
US stocks turned higher late Thursday morning, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.1%. Nvidia stock tumbled 5% after CEO Jensen Huang was ousted. Some chipmakers including Intel and Micron fell, while Nvidia rival AMD rose.
The policy-sensitive 2-year Treasury yield surged 38.8 basis points over four trading sessions to 4.862% on Thursday, the biggest four-session climb since June 15, 2022. The jump followed the US midterm elections, hot October inflation and labor-market reports, and Fed Governor Chris Waller's suggestion Tuesday that a half-percentage-point hike might be warranted in December. Traders were pricing a higher terminal policy rate of 4.82%, versus 4.44% a few days ago, after the Fed raised rates in September to a range of 3.75% to 4%.
Ludovic Subran, chief investment officer and chief economist at Allianz, said he was not surprised by the latest US inflation print and that markets are underestimating a second inflation shock. He pointed to energy pass-through including diesel refining, food inflation and AI-related inflation, and said markets are now pricing three Fed hikes. Chicago Fed President Austan Goolsbee called the report "distressing" and said officials will have to deal with price pressures.
A rebound in artificial-intelligence stocks lifted the US market on Wednesday, with the S&P 500 up 0.9% and the Nasdaq composite up 1.4%, while the Dow Jones Industrial Average was down 56 points, or 0.1%, as of 9:35 a.m. Eastern time. CoreWeave, which rents out access to AI chips over the cloud, leaped 10.7% after reporting a smaller quarterly loss than analysts expected. CEO Michael Intrator said the company has roughly $9 billion in customer prepayments and deposits expected in the next three months, which some analysts said showed progress toward being able to self-fund its business.
Artificial intelligence infrastructure stocks rallied after CoreWeave eased fears about its debt-laden business, with CoreWeave up as much as 20%, Nebius up 15%, IREN up 4.7%, Cipher Digital up 6.0%, Applied Digital up 4.8%, Hut 8 up 1.8% and Oracle up 6.4%. Fossil Group surged after reporting better-than-expected third-quarter results, with adjusted earnings of 23 cents per share versus expectations for a loss of 4 cents, revenue of $271.2 million against a $248.66 million consensus estimate, and a raised 2026 sales forecast. Mosaic fell as much as 2.6% after Freedom Capital Markets lowered its rating on the fertilizer firm to sell from hold on higher costs.
Nasdaq 100 futures rose roughly 1.9% and S&P 500 futures nearly 1%, with S&P 500 futures up 0.94%, Nasdaq futures up 1.86% and Dow futures up 0.30%, as stronger-than-expected CoreWeave results eased concerns about the sustainability of AI infrastructure spending. CoreWeave was up 15% in premarket trading and Fossil was up 25% after earnings, while Nvidia rebounded after losing roughly $430 billion in market value over the previous two sessions. Anthropic outlined plans for an IPO that could value the Claude developer at nearly $1.5 trillion.
The consumer price index rose 0.4% in October from September, more than a Dow Jones consensus estimate of a 0.3% increase. CME Group's FedWatch tool shows an 11% chance of a 50 basis-point hike in December, up from zero a week ago, and expectations for a quarter-point increase stand at 88%, up from 77%. The benchmark 10-year Treasury yield rose nearly 10 basis points to 4.95%.
Goldman Sachs now expects 25 basis-point Fed hikes in December 2026 and March 2027, adding a third hike to the cycle after a third straight month of hot inflation, and has pushed its first rate cut to December 2027. The bank says the March move could come in January but March is slightly more likely, and it expects most FOMC members to signal a third hike in the December dot plot. It still sees inflation meaningfully lower by end-2027 as tariff, energy and AI pressures fade.
