The major U.S. stock indexes rose in early trading on Thursday after consumer inflation data came in as expected, adding to Wall Street’s conviction that the Federal Reserve will resume rate cuts next week.
The Dow Jones Industrial Average was up 1.1% in early trading on Thursday, while the S&P 500 advanced 0.5% and the Nasdaq Composite rose 0.4%. The S&P 500 and Nasdaq closed at fresh record highs yesterday, boosted by cool wholesale inflation data and a blockbuster earnings report from Oracle.
Consumer inflation data came in largely as expected on Thursday, with headline inflation accelerating to 2.9% in August and core inflation, which excludes volatile food and energy prices, holding steady at 3.1%. The data comes after yesterday’s Producer Price Index showed wholesale prices unexpectedly fell slightly last month.
Thursday’s inflation print is the last piece of pivotal economic data the Federal Reserve will get before its policy meeting next week. Policymakers will consider the details of both of this week’s inflation reports to determine whether to cut rates to support the weakening labor market despite the risk that tariffs could fuel inflation, which remains well above the Fed’s 2% target. Investors are increasingly confident that the Fed is on track to cut interest rates for the first time in nearly a year.
Treasury yields fell following Thursday’s inflation data as investors priced in imminent interest rate cuts. The yield on the 10-year Treasury note, which influences rates on a variety of consumer and commercial loans, declined to 4.03% from 4.05% at Wednesday’s close.
Shares of Oracle (ORCL) slipped on Thursday after soaring more than 35% yesterday, their best day since 1992, following a blowout earnings report. The cloud computing company’s backlog ballooned to nearly half a trillion dollars last quarter, a sign to many on Wall Street that the artificial intelligence buildout is likely to be a boon to tech companies for years to come.
Mega-cap tech stocks were mixed Thursday morning. Shares of Apple (AAPL) and Tesla (TSLA) were recently up about 1%, while Nvidia (NVDA), Amazon (AMZN), and Meta Platforms (META) were all marginally higher. Shares of Microsoft (MSFT) and Alphabet (GOOG) ticked down slightly, while Broadcom (AVGO) fell 1%.
Meme stock Opendoor (OPEN) jumped more than 50% Thursday morning after the online homebuying company named Kaz Nejatian, chief operating officer of e-commerce platform Shopify (SHOP), to be its new CEO. Shares of buy now, pay later provider Klarna (KLAR) pulled back after soaring nearly 15% in their trading debut on Wednesday.
Gold prices were recently down 0.4% at $3,670 an ounce after hitting a fresh record earlier in the week. West Texas Intermediate futures, the U.S. crude oil benchmark, declined 1.4% to $62.75 a barrel.
The price of Bitcoin was recently at $114,400, near its highest price this week. The cryptocurrency has come under pressure recently after running up to a record high of more than $124,000 in mid-August.
The U.S. dollar index, which tracks the value of the dollar against a basket of foreign currencies, was down 0.2% at 97.60.
Meme Stock Opendoor Skyrockets as Firm Names New CEO, Brings Back Co-Founders to Board
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Opendoor Technologies (OPEN) shares soared 50% Thursday, a day after the online real-estate platform named a new CEO, brought back its founders to be on the board, and got a new infusion of cash.
The company announced that former Shopify (SHOP) COO Kaz Nejatian would be taking over as CEO, replacing Carrie Wheeler, who stepped down last month after facing pressure from shareholders as the company struggled in its turnaround efforts.
In addition, Opendoor said co-founders Keith Rabois and Eric Wu were returning to the Board of Directors, with Rabois becoming Chairman. Lead Independent Director Eric Feder explained that the pair “will inject the ‘founder DNA’ and energy at a pivotal moment for Opendoor.”
Along with their new positions, Rabois’ venture capital firm, Khosla Ventures, and Wu have struck securities purchase agreements with Opendoor to invest $40 million in the firm. Opendoor noted that it planned to use the money “to fund continued investment in the business.”
Opendoor Technologies shares have surged since July as retail investors have piled into the meme stock. They ended June trading at $0.53 each but now are approaching $9 with today’s gains.
Stock Futures Tick Higher After August CPI Data
1 hr 6 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.2% in premarket trading on Thursday.
S&P 500 futures were also up 0.2%.
Nasdaq 100 futures advanced 0.3%.
