US stocks advanced on Thursday, supported by gains in energy and technology, as investors looked ahead to key inflation data. The S&P 500 rose 0.4% at midday in New York, the NASDAQ 100 gained 0.7%, and the Dow Jones Industrial Average edged up 0.2%. The Stoxx Europe 600 climbed 0.4%, while the MSCI World Index added 0.3%.
Oil prices surged after President Donald Trump announced new sanctions on Russia’s two largest oil companies, Lukoil and Rosneft, in a bid to pressure Moscow over the war in Ukraine. West Texas Intermediate crude rose 5.8% to $61.92 a barrel, while Brent crude futures climbed more than 5%. European natural gas prices also rose, and energy stocks, such as ExxonMobil, BP, and Shell, advanced.
The sanctions, combined with the EU’s new ban on Russian liquefied natural gas imports starting next year, have driven concerns about global supply. The jump in energy prices reignited inflation worries, lifting Treasury yields. The 10-year US Treasury yield increased by five basis points to 4%, while the 30-year yield climbed to 4.58%.
Gold rose 1.1% to $4,143.66 an ounce after a two-day slide, and Bitcoin gained 2.2% to $110,028. The dollar traded mixed against major currencies as the yen weakened to 152.72 per dollar.
The upcoming September Consumer Price Index (CPI) report, delayed by the US government shutdown, is forecasted to indicate a 0.3% monthly increase in core inflation, maintaining the annual rate at 3.1%. Despite sticky inflation, investors expect the Federal Reserve to announce a rate cut next week, its second this year, due to labor market weakness.
Analysts said traders are likely to overlook a slightly hotter CPI print. Andrew Brenner of NatAlliance Securities noted that the Fed remains more focused on employment conditions than short-term inflation changes. JPMorgan Chase & Co.’s trading desk projected a 65% chance the S&P 500 will rise after the CPI release, suggesting confidence that the Fed’s easing cycle will continue.
UBS Global Wealth Management said an accommodative Fed, steady earnings, and strong AI-related spending continue to support equities. Nevertheless, it cautioned that the ongoing tension in US-China trade negotiations and the possibility of a technology stock crash would place a strain on short-term sentiment.
The Federal Reserve’s meeting on October 28 - October 29 will provide further clarity on the direction of monetary policy. Economists also widely expect more rate cuts by year's end, with other investors anticipating two cuts before the end of the year.
IBM reported lower revenue in its key software divisions, including Red Hat, sparking worries among investors about future growth
Super Micro Computer provided first-quarter guidance that fell short of Wall Street expectations, disappointing those invested in AI.
Microsoft is encouraging its Xbox division to achieve profit margins above the industry average despite recent sector challenges.
Palantir Technologies partnered with Lumen Technologies to develop AI software focused on expanding telecom-related AI services.
Nokia surpassed profit forecasts due to high demand for AI and cloud services.
STMicroelectronics predicts that its fourth-quarter revenue will be below analyst estimates, indicating a slowdown in chip industry demand.
American Airlines: Posted a smaller-than-expected quarterly loss and raised its full-year outlook as corporate and premium travel improved.
Southwest Airlines' shares declined after the firm warned that the US government shutdown was affecting domestic travel demand.
T-Mobile US gained one million new subscribers and increased its annual forecast following its acquisition of US Cellular.
Union Pacific exceeded profit expectations, demonstrating strong freight demand despite tariff pressures.
Volvo Car AB reported higher quarterly profits, supported by a $1.9 billion cost-saving initiative.
Honeywell International: The company raised its annual profit forecast and beat earnings estimates, driven by its aerospace segment.
Dow Inc.: Improved industrial volumes, reducing quarterly losses more than expected.
Blackstone Inc.: Expanded its credit assets to $508 billion, focusing on higher-grade debt opportunities.
Tractor Supply Co.: Narrowed full-year guidance as tariffs and softer consumer spending weighed on results.
Moderna: Announced that its cytomegalovirus vaccine failed in a late-stage trial, a setback for post-pandemic growth.
Molina Healthcare: Missed quarterly earnings and cut guidance for the third time this year, citing higher medical costs.
Ventyx Biosciences: Reported positive mid-stage trial results showing reductions in cardiovascular risks for obesity patients.
Roche Holding: Warned that a US investigation into drug costs could pressure global pricing.
Galderma Group: Raised sales and margin guidance on strong US demand for its eczema cream Nemluvio.
Unilever: Delivered stronger-than-expected sales, driven by demand in North America.
Las Vegas Sands: Beat analyst profit estimates for the third quarter.
Rogers Communications: Exceeded forecasts due to wireless and media growth, supported by the Toronto Blue Jays’ playoff run.
Binance: Co-founder Changpeng Zhao received a presidential pardon from Donald Trump after serving time for compliance failures.
Overall, markets remain cautiously optimistic, supported by strong corporate earnings and expectations of further monetary easing. However, rising energy prices, geopolitical tensions, and inflation uncertainty continue to weigh on the global economic outlook.