4:12pm: Winning week
The three major stock indexes finished the week higher, with the Nasdaq going on to book another record close on Friday.
The index was up 0.4% at 22,141 points, while the S&P 500 slipped 0.1% to 6,584 points and the Dow Jones retreated 0.6% to 45,834 points.
3:21pm: Market movers
- Joby Aviation Inc (NYSE:JOBY) shares gained nearly 3% to about $14 on Friday after the developer of air taxis for commercial passenger service announced its participation in the White House’s new electric vertical takeoff and landing (eVTOL) Integration Pilot Program.
- Super Micro Computer Inc (NASDAQ:SMCI) shares moved higher Friday after the company announced it had started large-scale shipments of Nvidia Corp (NASDAQ:NVDA, ETR:NVD)'s Blackwell Ultra AI systems, boosting investor confidence in the company's role in the expanding AI infrastructure market.
- RH (NYSE:RH), formerly known as Restoration Hardware, reported second quarter financial results below Wall Street estimates, sending the luxury furniture store’s shares lower on Friday.
- Paramount Skydance is reported to be weighing a bid for Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A), a move that would fuse two studios already transformed by recent tie-ups, sending shares of both companies higher.
1:59pm: Rate cut expectations
Deutsche Bank economists expect the US Federal Reserve to deliver a 25-basis point (bps) rate cut at next week’s FOMC meeting and signal that more reductions are likely to follow over the remaining meetings this year, they wrote in a note to clients on Friday.
“We now expect the Fed to cut by 75bps total this year, 25bps at each of the remaining meetings," the economists stated, citing recent data showing further weakness in the labor market and somewhat more modest inflationary pressures than anticipated.
They noted that lower rates are likely to be motivated by risk management considerations.
Deutsche Bank’s economic team said this path would leave the fed funds rate at 3.5% to 3.75% by year end, consistent with their view of neutral.
“While we currently do not have additional rate cuts in our forecast for next year, given that our inflation and labor market forecasts are inconsistent with rates below neutral, risks are skewed towards more reductions in 2026,” they added.
12:38pm: Copper the 'new gold'
Copper prices have once again exceeded US$10,000 a ton, or US$4.68 per pound, and at least one analyst thinks the metal’s ratio to the gold price could indicate a continuation of the recent rally in US stocks.
“This is significant, the copper price is often considered a proxy for global growth, and it has only ever breached this level a handful of times, most recently in March,” XTB research director Kathleen Brooks wrote in note to clients.
One of the key price drivers, she said, has been supply constraints, as the industry is facing mounting challenges including deeper mining operations, falling ore grades, and rising costs.
As well, demand has also been surging due to the transition to cleaner energy and AI demand for electricity, in which copper serves as an excellent conductor, she noted.
11:10am: Consumer sentiment weakens
The University of Michigan's Consumer Sentiment Index for September 2025 fell to 55.4, down from 58.2 in August, marking the lowest level since May 2025 and the second consecutive monthly decline.
Consumers expressed rising concerns about economic conditions, including risks to business conditions, the labor market, and inflation.
Year-ahead inflation expectations remained steady at 4.8%, while long-run inflation expectations increased to 3.9% from 3.5% the previous month.
The rally in US stocks stalled on Friday following the release of the data, as investor jitters returned ahead of the Fed's September meeting next week.
"Wall Street continues to trade in record highs but is losing momentum ahead of next week's Fed meeting," IG senior technical analyst Axel Rudolph said. "Wall Street flirted with record highs without much conviction as US consumer sentiment weakened."
9:45am: Investors take a breath
US stocks were mixed at Friday’s open, with investors taking a breather at the end of a record-breaking week for the three major indices.
The Dow Jones retreated from its record, down 0.2% at 46,031 points. The S&P 500 was flat at 6,587 points while the Nasdaq edged 0.1% higher at 22,075 points.
The record-setting rally was driven by fresh data inflation yesterday which cemented expectations of an interest rate cut from the Federal Reserve at its September meeting.
“It’s not that the inflation data matters much at this stage – all attention is shifting toward the weakening US jobs market – but yesterday’s CPI figures, broadly in line with expectations, combined with a jump in initial jobless claims, gave full justification to those calling for a Fed cut next week,” Swissquote Bank senior analyst Ipek Ozkardeskaya said.
“Two more cuts are already fully priced in before year-end. That’s the good news.”
8:15am: Stock futures mixed
US stock futures were mixed ahead of the open, with the Dow Jones and S&P 500 expected to retreat from Thursday's record high when stocks rose on the growing likelihood of an interest rate cut next week.
Dow futures were down 0.2% an hour and a half before the market open, with those for the S&P down 0.1%, while Nasdaq futures were a few points higher.
The Dow closed 1.4% up yesterday after the latest labor market and consumer inflation data all but cemented a rate cut when the Federal Open Market Committee meets next week. The S&P gained 0.9% while the Nasdaq added 0.7%.
According to interactive investor's Richard Hunter, the stars are now "fully aligned" for a US interest rate cut next week.
"The only debate is what the scale of the reduction might be," he commented.
"The Federal Reserve has a dual mandate which covers inflation and employment, and updates on both yesterday paved the way for monetary easing, sending each of the main (US) indices to both intraday and record closing highs. Underpinned by a week which has seen the AI euphoria being rekindled, stocks have risen across the board, including the high-performing tech sector as well as the likes of banks and retailers, which should benefit from a lower interest rate environment."
European markets were mixed this morning. London's FTSE 100 rose 0.4%, but Frankfurt's DAX shed 0.2% and the Paris CAC 40 fell 0.5%.
In Asia, Tokyo's Nikkei 225 closed 0.9% firmer and the Hang Seng in Hong Kong jumped 1.2%, while Shanghai's SSE Composite ended 0.1% down. In Mumbai, the BSE Sensex added 0.4% and Sydney's ASX 200 closed 0.7% firmer.