Stock Market Recovers as Inflation Insights Stir
The stock market witnessed an uplifting session, bouncing back marginally from recent dips, stimulated by the latest inflation insights. There’s however a level of uncertainty loosely hanging in the market place, attributed to new tariff pronouncements by President Trump, inclusive of the commitment to impose severe duties on pharmaceuticals and components for heavy trucks. Data from the Department of Commerce revealed that in the month of August, the personal consumption expenditures price index, which is regarded as the Federal Reserve’s favored indicator of inflation, notably increased by 0.2% in comparison to the preceding month and by 2.9% when contrasting towards the same time a year prior, with food and energy excluded. In other news, commodities such as gold and oil experienced noteworthy hike, with gold turnover exceeding the $3,800 point, edging closer to the all-time peaks while oil prices displayed substantial ascension following a rollercoaster month.
President Trump gave notice of his intent to implement a substantial 100% tariff on medicinal products entering the U.S. effective from 1st October. This is however subject to an exception if the manufacturing companies are constructing plants within the U.S. For other entities, significant tariffs were reported too; a 50% tariff to be imposed on bathroom vanities, kitchen cabinets, and the peripherals from October 1. Additionally, a 25% tariff was slated for all heavy trucks made in ‘other areas of the world’. From a commerce perspective, Costco (COST) publicized positive Q4 outcomes and earnings, maintaining their stance that inflation persists at a low to mid-single digit span. With regard to the gaming sector, Electronic Arts (EA) is closing in on a private purchase deal by an investment consortium, including Saudi Arabia’s Public Investment Fund and Silver Lake, with a consideration of around $50B.
Apellis (APLS) is reportedly facing a demotion to ‘Sell’ by Goldman Sachs, who foresee potential risks ahead. Riot Platforms (RIOT) experienced an upgrade from ‘Neutral’ to ‘Buy’ standing by Citi. Similarly, Rothschild & Co endorsed Kenvue (KVUE) upgrading them from Neutral to Buy. Conversely, CarMax (KMX) faced a downgrade to ‘In Line’ from ‘Outperform’ by Redburn Evercore ISI, citing market share strains and excessive credit strain evidenced by Q2 results. Consequently, Warner Bros. Discovery (WBD) was dropped from ‘Overweight’ to ‘Sector Weight’ by KeyBanc, who did not announce a price target concurrently.
Orsted, the offshore wind developer, is in active negotiations with Apollo (APO) for the latter’s purchase of a 50% stake of the Hornsea 3 wind farm, valued at GBP 8.5B. The strategic move intends to stabilize Orsted’s financials, following recent obstacles. SoftBank (SFTBY) and Ark Investment are rumoured to be among potential investors participating in a significant investment round for Tether Holdings, the stablecoin issuer. Meanwhile, a broadcasting dispute has arisen between NBCUniversal (CMCSA) and YouTube TV (GOOGL) regarding their carriage fee structure, leaving YouTube TV subscribers in suspense concerning continuity of NBCUniversal programming. At the world’s largest Apple (AAPL) iPhone factory, managed by Foxconn (HNHPF) located in Zhengzhou, labor disputes continue with workers suffering wage delays, excessive overtime, and alleged discrimination against certain ethnic groups. Furthermore, Starbucks (SBUX) has announced the resignation of their incumbent CTO, Deb Hall Lefevre.
In regards to pharmaceutical firm Crinetics (CRNX), after the FDA stamped its approval on PALSONIFY, the company livened up. Perpetua Resources (PPTA) displayed movements after the company released an update on its initiatives to bolster the U.S. antimony supply chain. Nuclear detection and measurement stalwart Mirion (MIR) saw an uptick after JPMorgan introduced coverage of the stock with an ‘Overweight’ rating. Conversely, chemical company Braskem (BAK) had a soggy start in New York upon their announcement about seeking financial alternatives. Similarly, IREN (IREN) witnessed a decline in New York, following JPMorgan’s rating downgrade of the stock to ‘Underweight’.
Staar Surgical (STAA) shared guidance for their FY26 financial year. Business services company, Concentrix (CNXC), reported their Q3 results, however indicating a lower guidance than initially expected for FY25. LightPath (LPTH) shared Q4 results, albeit missed earnings per share consensus. Legacy Education (LGCY) released Q4 results, with their commentary expressing optimism as they believe that ‘Legacy Education is well poised to continue its growth trajectory in 2026’. BGC Group (BGC) reaffirmed its guidance for Q3.
The Dow concluded a successful session with an increase of 299.97 points, a 0.65% climb, ending at 46,247.29 points. The Nasdaq had a similar positive note, with an upswing of 99.37 points, a 0.44% gain, closing at 22,484.07 points. Lastly, the S&P500 index advanced by 38.98 points, an increment of 0.59%, resting at 6,643.70 at close.