Stocks Mostly Down Pre-Bell as Investors Anticipate Fed Rate Cut After Fresh Inflation, Labor Data

07:35 AM EDT, 09/12/2025 (MT Newswires) -- The benchmark US stock measures were mostly tracking in the red before Friday's open amid increasing investor expectations that the Federal Reserve will lower rates next week following the latest inflation and labor data.

The S&P 500 edged down 0.1% and the Dow Jones Industrial Average was off 0.2% in premarket activity, while the Nasdaq was slightly in the green. The indexes hit new closing highs on Thursday, with the S&P 500 and the Nasdaq recording gains for the fourth consecutive trading day.

Consumer inflation in the world's largest economy accelerated at the fastest pace in seven months in August, while the annual core rate remained above 3%, official data showed Thursday. Separately, the Department of Labor reported that weekly applications for unemployment insurance reached a nearly four-year high, adding to signs that have ignited fears about a slowdown in the labor market.

Earlier in the week, government data showed that producer prices fell for the first time in four months in August, defying Wall Street's expectations for a rise.

"Inflation was a touch higher than expected and tariffs are likely to keep it elevated over coming months, but the weakening of the jobs market is now the (Federal Reserve's) priority, with rising jobless claims hinting at a pick-up in lay-offs at a time when hiring is subdued," James Knightley, ING chief international economist in New York, said in a Thursday report.

The probability of the Federal Open Market Committee reducing its policy rate by 25 basis points next week stood at about 93% on Friday, with the remaining odds in favor of a 50-basis-point cut, according to the CME FedWatch tool.

Treasury yields were trending higher in premarket action, with the two-year rate rising 2 basis points to 3.55% and the 10-year rate increasing 2.3 basis points to 4.03%.

Friday's economic calendar has the preliminary University of Michigan consumer sentiment report for September at 10 am ET, followed by the weekly Baker Hughes oil-and-gas rig count at 1 pm.

Shares of Adobe (ADBE) inclined 3.7% pre-bell as the software maker reported stronger-than-expected fiscal third-quarter results. Warner Bros. Discovery (WBD) gained 5.4% following media reports that Paramount Skydance (PSKY) is preparing a majority cash bid to buy the company.

Opendoor Technologies (OPEN) declined 2.7% before the bell after closing Thursday's session up 80%. RH (RH) fell 9.6% as the home furnishing retailer lowered its full-year revenue growth outlook amid persistent tariff-related uncertainties, while its fiscal second-quarter results came in below market estimates.

West Texas Intermediate crude oil advanced 0.7% to $62.78 a barrel before the opening bell. On Thursday, the International Energy Agency lifted its projections for global oil demand growth for 2025, while raising supply forecasts for the year.

Separately, the Organization of the Petroleum Exporting Countries maintained its global oil demand projections, saying the world economy remained on course for robust expansion.

Gold nudged up 0.4% to $3,688 per troy ounce, while bitcoin rose 0.5% to $115,002.

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