Stock indexes are trading higher today, with the S&P 500 up +0.79%, Dow Jones up +0.66%, and Nasdaq up +1.04%. The slightly weaker-than-expected US CPI report may give the Fed room to cut interest rates. Sep CPI at +3.0% y/y and core CPI at +3.1% y/y were below market expectations.

The Sep CPI report matched a 16-month high at +3.0% y/y, and core CPI remained above the Fed’s 2.0% target. Oct S&P US manufacturing PMI rose to 52.2, beating expectations. Oct S&P US services PMI also exceeded expectations at 55.2. However, the final-Oct University of Michigan US consumer sentiment index fell to 53.6.

President Trump terminated trade negotiations with Canada after an anti-tariff ad surfaced. Courts have deemed Trump’s reciprocal tariffs illegal, pending a US Supreme Court decision. Markets are focused on US-China trade talks, with Trump threatening higher tariffs on Chinese goods by November 1. The US government shutdown continues, impacting economic reports.

The Q3 earnings season remains positive, with 85% of S&P 500 companies beating forecasts. Overseas markets are mixed, with Euro Stoxx 50 down -0.26%, China’s Shanghai Composite up +0.71%, and Japan’s Nikkei Stock 225 up +1.35%. Interest rates are steady, with T-notes up +2 ticks and a 97% chance of a -25 bp rate cut.

Stock movers include gains in Alphabet, Nvidia, and Amazon. Crypto stocks are up, with Bitcoin and Ethereum rising. Ford surged on earnings optimism, while Newmont fell on production concerns. Earnings reports today include Booz Allen Hamilton Holding Co, General Dynamics Corp, and Procter & Gamble Co.

Read more at Nasdaq: Stocks See Support from Favorable CPI Report