U.S. stocks rose at the open on Friday, as investors clung to expectations of lower interest rates ahead of a Federal Reserve meeting that could herald a broader easing cycle.
Wall Street largely shrugged off some strong readings on consumer and product inflation this week, with technology stocks rising, buoyed by renewed optimism about artificial intelligence, also contributing to the gains.
U.S. stocks also rose despite some political uncertainty after a heated presidential debate between Donald Trump and Kamala Harris, with analysts seeing Harris gain an advantage over the Republican nominee.
By 09:37 ET (13:37 GMT), the benchmark index was up 16 points, or 0.3%, with technology stocks up 56 points, or 0.3%, and the 30-cap stocks up 111 points, or 0.3%.
The Federal Reserve is heading towards cutting interest rates, and the markets are divided between a decision to cut by 25 or 50 basis points
The central bank is widely expected to cut interest rates when it does, although investors are divided over whether it will cut rates by 25 or 50 basis points.
While this week’s flat inflation data has seen expectations shift toward a 25bp cut, some weak labor market data has boosted bets for a larger 50bp cut.
Friday’s data showed traders were pricing in a 51% chance of a 25 basis point rate cut and a 49% chance of a 50 basis point rate cut.
Next week’s decision is likely to mark the start of a easing cycle by the Fed, with the central bank expected to cut interest rates by at least 100 basis points this year. But investors were now looking for more concrete signals on that front, as Fed officials have hinted at possible rate cuts but offered no clear indications on the scope of any planned cuts.
Boeing (NYSE:) Workers Vote to Strike
In corporate news, more than 30,000 Boeing workers are set to strike after employees at the company’s plant in the US Pacific Northwest voted to walk off the job over pay demands, posing further challenges to the aerospace giant.
Boeing shares fell more than 3% before the opening bell on Wall Street.
Meanwhile, Adobe Inc. (NASDAQ:) missed analysts’ fourth-quarter revenue forecasts, sending shares of the Photoshop maker sharply lower. The California-based group said it expects sales for the period to be between $5.50 billion and $5.55 billion, below the London Stock Exchange’s forecast of $5.61 billion.
Shares of Oracle Corp. (NYSE:) rose after the database software group unveiled revenue guidance for fiscal 2026 that beat analysts’ expectations. The company said it now expects to generate $66 billion in revenue for the period. Analysts had expected the figure to come in at $64.5 billion, according to LSEG data cited by the media.
Oil on track for positive week
Oil prices rose in European trading on Friday and were set to record a positive close for the week as concerns over supply disruptions caused by Hurricane Francine helped crude rebound from its lowest levels in nearly three years.
But prices are still reeling from sharp losses from last week, trading only slightly above their lows this week, as ongoing concerns about slowing demand tempered crude’s advance.
Brent crude futures, which expire in November, rose 0.8% to $72.57 a barrel, while U.S. crude futures rose 0.9% to $69.58 a barrel by 09:43 a.m. ET.
Both contracts are expected to break a series of weekly declines if the gains continue.
Ambar Warrick contributed to this report.
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