IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Japan Election Poll Signals Landslide Win for Sanae Takaichi, Raising Fiscal Policy Concerns 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
U.S. Government Faces Brief Shutdown as Congress Delays Funding Deal 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
China Factory Activity Slips in January as Weak Demand Weighs on Growth Outlook 
Oil Prices Slide Nearly 3% as U.S.-Iran Talks Ease Geopolitical Tensions 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
U.S. stocks closed higher on Friday after inflation data aligned with expectations, though all three major indexes recorded weekly declines. The S&P 500 and Nasdaq ended their three-week winning streaks, while the Dow Jones Industrial Average also slipped slightly for the week.
The Commerce Department’s personal consumption expenditures (PCE) index, the Federal Reserve’s preferred inflation measure, showed prices rose 0.3% in August and 2.7% year-over-year, matching forecasts. Personal income and consumer spending both exceeded estimates, signaling resilience in the economy. Investors are weighing these strong economic signals against expectations for further interest rate cuts following the Fed’s recent decision to lower rates for the first time since December.
Market analysts noted that investor positioning ahead of quarter-end contributed to volatility. Bruce Zaro of Granite Wealth Management described the moves as “typical quarter-end window dressing,” with further market swings expected as earnings season begins in mid-October.
Corporate earnings also drove sharp stock moves. Paccar jumped 5.2% after President Donald Trump announced fresh tariffs, including on heavy-duty trucks, while Eli Lilly gained 1.4% despite tariffs on branded pharmaceuticals. Electronic Arts soared 14.9% on reports it may go private. Conversely, Costco shares slid 2.9% following earnings results.
For the day, the Dow rose 0.65% to 46,247.29, the S&P 500 added 0.59% to 6,643.70, and the Nasdaq climbed 0.44% to 22,484.07. However, weekly losses stood at 0.2% for the Dow, 0.3% for the S&P 500, and 0.7% for the Nasdaq.
Investors also absorbed comments from Fed officials. Richmond Fed President Thomas Barkin expressed doubts about inflation forecasts given tariff impacts, while Vice Chair Michelle Bowman stressed the need for proactive action to support a weakening labor market. The upcoming September jobs report and the looming threat of a government shutdown are expected to add further uncertainty to markets.
Meanwhile, market breadth was positive, with advancing stocks outnumbering decliners on both the NYSE and Nasdaq. Trading volume reached nearly 17 billion shares, slightly below the recent 20-day average.
