US Stock Market Today: NASDAQ 100 Rises 0.7% as Traders Position for Fed Rate Cut After Soft Inflation Reading

US equities advanced on Friday as traders assessed a new inflation reading and prepared for next week’s Federal Reserve decision. Major indexes posted moderate gains, supported by stronger activity in technology shares and steady sentiment across global markets. Treasuries weakened further, placing the benchmark 10-year yield on track for its worst weekly performance since June.

The S&P 500 gained 0.4% in early New York trading, while the NASDAQ 100 rose 0.7%. The Dow Jones Industrial Average advanced 0.5%. Overseas, the Stoxx Europe 600 rose 0.4% and the MSCI World Index added 0.3%, signaling broad interest in risk assets ahead of the Fed meeting.

Inflation Data Anchors Market Expectations

The Federal Reserve’s preferred inflation measure showed limited movement. The core personal consumption expenditures index rose 0.2% in September, matching expectations for the third straight month. Markets interpreted the reading as confirmation that inflation pressures continue to ease gradually, even though progress remains uneven.

Short-term funding pressures and mixed labor readings complicated the broader picture. Jobless claims reached their lowest level since September 2022, while Challenger reported more than one million layoffs year-to-date. These cuts stemmed from restructuring, automation, and tariff adjustments. Traders still placed an 87% probability on a quarter-point rate cut next week, based on CME FedWatch data.

Sector Rotation and Equity Momentum

Market participants increased exposure to domestically focused stocks ahead of next week’s decision. Strategists noted that small-cap shares reacted positively to the rate outlook because they remain sensitive to financing costs and local business conditions. The Russell 2000 climbed more than 1% in early trading.

Sector performance leaned positive across the board. Communication services led with a 0.91% gain, supported by steady demand for large technology firms. 

Several research teams struck a more careful note. Bank of America argued that a softer message from the Fed could actually hint at a deeper-than-expected economic slowdown. Bloomberg Intelligence added that its US market health checklist, which improved steadily over the summer, now shows that momentum is starting to stall. Even so, money continues to flow into equities, with US stock funds logging a twelfth (12th) straight week of inflows totaling about $700 million.

Crypto and Commodity Market Moves

Bitcoin lost 1.5% and traded near $90,807 as investors reduced exposure to digital assets. Meanwhile, Ether traded near $3,127 after a small rebound.

Institutional appetite for spot Bitcoin exposure showed signs of cooling. BlackRock’s iShares Bitcoin Trust ETF (IBIT) recorded more than $2.7 billion in outflows over the past five weeks. This marks the longest stretch of weekly withdrawals since the product launched in January 2024. Additional redemptions on Thursday put the fund on pace for a sixth consecutive week in net outflow, signaling more cautious positioning among larger investors.

• Netflix / Warner Bros. Discovery: Netflix agreed to acquire Warner Bros. Discovery’s film and streaming assets in a landmark media deal valued at $72 billion. Warner Bros. Discovery shares rose about 2%, while Netflix stock slipped roughly 2% following the announcement.
  

• Moore Threads Technology Co.: The Chinese artificial intelligence chipmaker surged as much as 425% in its Shanghai debut after raising 8 billion yuan ($1.13 billion). The move marked the largest first-day gain for a major IPO since China’s 2019 listing reforms.
  

• NVIDIA and US Export Curbs: New bipartisan legislation in Washington aims to codify existing restrictions on exports of advanced AI chips to China. The proposal would bar NVIDIA from shipping certain high-end processors to the Chinese market.
  

• Rubrik: Shares of cybersecurity firm Rubrik jumped nearly 19% after the company beat revenue and profit expectations and raised its revenue forecast for 2026.
  

• Cooper Companies: Health-care group Cooper Cos gained more than 13% after issuing guidance for adjusted 2026 earnings per share that topped analyst estimates.
  

• Ulta Beauty and Victoria’s Secret: Ulta Beauty climbed about 6% after it raised its full-year outlook on stronger-than-expected third-quarter results. Victoria’s Secret advanced as the retailer reported better sales and lifted its annual guidance, signaling progress in its turnaround plan.
  

• SoFi and docusign: SoFi dropped around 7% after announcing a $1.5 billion equity offering. docusign declined about 5% despite topping consensus forecasts, as investors focused on future growth signals.

Investors now turn their focus to the Federal Reserve’s upcoming meeting. Traders expect officials to weigh stable inflation, softer labor data, and overall financial conditions as they map out the next steps in monetary easing.

Also Read: US Stock Market Today: Meta Stocks Jump 4% as Traders Weigh Fed Outlook Against Fresh US Labor Signals