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The annual inflation rate in the US rose slightly to 3.0% in September, the highest since January, but was still lower than the 3.1% forecast.
What Went Up: The biggest push came from Energy prices, which jumped 2.8% due to higher costs for fuel oil and a smaller drop in gasoline prices compared to August. Prices for new cars also rose slightly faster.
What Slowed Down: The rate of price increases slowed for food, used cars/trucks, and transportation services.
Shelter costs (rent/housing) stayed steady at 3.6%.
The key point for the market was that the annual Core Inflation rate (which excludes food and energy) actually slowed to 3.0% (down from 3.1% in August), surprising markets that expected it to hold steady.
Month-over-month, overall consumer prices rose by 0.3%, with gasoline being the largest factor, but this was still slower than the 0.4% rise seen in August. Core inflation for the month also rose slower than expected.
Source: BLS
Wall Street Eyes Positive Open
As a result of the inflation, US stock indexes were set for a strong opening on Friday. Add to that positive earnings from the tech sector and the stage is set for a solid day ahead.
Intel's shares jumped 5.9% before the market opened after the chip company easily beat its profit forecasts, which also lifted rival chip stocks like AMD and Micron. This positive momentum sets a good tone for the coming week, when five of the seven largest tech companies, the "Magnificent Seven," are scheduled to report earnings amid the ongoing excitement over AI.
Separately, Procter & Gamble's stock rose 3.5% after it also beat its profit estimates, signaling that consumer demand for everyday products remains healthy.
Overall, futures for the major indexes like the Dow, S&P 500, and Nasdaq all indicated gains, with small-cap stocks also expecting a significant rise.
There is some data ahead in the form of PMI and Michigan sentiment data, both of which could stoke further volatility depending on the print.
Technical Analysis - Dow Jones Index
From a technical standpoint, the Dow index is a whisker away from the October 21 high around 47335.
A golden cross pattern is taking place as we speak with the 50-day MA crossing above the 100-day MA which is a signal of bullish momentum.
However, given the recent rally, could the Dow experience a pullback before the next leg higher?
Support rests at 46677 and 4650 respectively.
Dow Jones Index Daily Chart, October 24, 2025
Source: TradingView
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