Overview
The U.S. stock market broke its three-day losing streak, rising on Friday as the PCE price index showed inflation in line with expectations. Despite this positive development, President Trump's announcement of new tariffs added to market uncertainty. Trump's plan to impose a 100% tariff on pharmaceutical products from companies without U.S. manufacturing facilities sent European and Asian drug company shares tumbling, and he hinted at further tariffs on large trucks and some furniture starting October 1.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News
The core PCE index rose 2.9% compared to the previous year, surpassing the Fed's target but staying within market forecasts. The consumer sentiment index from the University of Michigan was lower than expected, reflecting economic concerns, but August's personal consumption expenditures exceeded expectations, showcasing a resilient economy. Meanwhile, President Trump's new tariff threats and potential government shutdown continue to loom over the market. Trump's rhetoric has shifted the blame for the shutdown risk onto the Democrats, and should it occur, it might delay next week's September employment report.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 20:30 | Speech by Fed President Waller |
| 23:00 | U.S. August Pending Home Sales |
General Opinion
Market experts view the recent rise positively, indicating a potential continuation of a bullish market. Despite the looming tariff announcements and shutdown threats, historical evidence suggests that substantial market impacts are unlikely. Analysts from Wells Fargo and Trist Advisory note that while shutdowns can induce short-term volatility, they often resolve without significantly affecting the market long-term. The recent data has reassured hesitant investors, suggesting that continued consumer spending could drive market strength forward, barring any significant surprises in upcoming employment data.
