Equity Markets Rise Intraday After Soft Inflation Report

02:25 PM EDT, 10/24/2025 (MT Newswires) -- US benchmark equity indexes were higher intraday after a soft September inflation report reinforced expectations of further monetary policy easing by the Federal Reserve.

The Nasdaq Composite was up 1.4% at 23,251.1 after midday Friday, while the Dow Jones Industrial Average rose 1.2% to 47,273.1. The S&P 500 rose 1% to 6,804. Among sectors, technology and communication services paced the gainers, while energy saw the biggest drop.

In economic news, US consumer prices grew less than expected last month, while core inflation surprisingly ticked down.

"September's inflation report came in a bit softer than expected, thanks to a sharp cooling in primary shelter costs," TD Economics said. "Elsewhere, there were plenty of signs to suggest that elevated inflationary pressures are likely to persist in months ahead."

Inflation pressures are unlikely to keep the Fed from delivering another interest rate cut of 25 basis points next week, as policymakers appear more concerned about a softening labor market, TD said.

"However, hotter readings on subsequent inflation prints could have implications for future decisions, particularly given the growing divide among (Federal Open Market Committee) members," the firm wrote. "For now, markets are still priced for another 50 basis points of easing by year-end -- a view that aligns to our forecast."

The September inflation report was originally slated for an Oct. 15 release, but was rescheduled due to the ongoing government shutdown. The stoppage is expected to continue at least through the weekend, with the Senate recessed until next week and US President Donald Trump departing later on Friday for a trip to Asia, USA Today reported.

US consumer sentiment dropped for a third consecutive month in October as concerns over high prices persisted, according to a survey by the University of Michigan.

"Consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers' minds," Surveys of Consumers Director Joanne Hsu said.

Separately, US private-sector output grew in October at the fastest pace in three months amid gains in both manufacturing and services, according to S&P Global's (SPGI) flash purchasing managers' index data.

US Treasury yields were little changed intraday, with the 10- and two-year rates almost steady at 3.99% and 3.48%, respectively.

Trump announced in a social media post that the US terminated all trade negotiations with Canada due to a Canadian advertisement featuring the voice of former US President Ronald Reagan criticizing tariffs on foreign goods.

West Texas Intermediate crude oil was down 0.4% at $61.51 a barrel intraday.

In company news, Ford Motor (F) shares jumped nearly 13%, the best performer on the S&P 500, after the automaker delivered third-quarter top- and bottom-line beats late Thursday.

Deckers Outdoor (DECK) shares were down 13% intraday Friday, the worst S&P 500 performer. The footwear designer and distributor late Thursday issued a full-year outlook below market estimates.

Gold was down 0.4% at $4,131 per troy ounce, while silver lost 0.6% to $48.43 per ounce.

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