U.S. stock markets experienced a rebound on Friday, September 26, 2025, as investors reacted positively to inflation data that largely met expectations, helping major indexes snap a three-day losing streak. The Dow Jones Industrial Average (DJIA) led the gains, while the tech-heavy Nasdaq Composite (IXIC) saw a more modest rise, reflecting continued sector-specific pressures. The day's performance comes ahead of a critical week packed with economic announcements and Federal Reserve insights, keeping market participants on edge.
Major Market Indexes Performance
The trading session on Friday saw a generally optimistic mood, though not without underlying caution. The Dow Jones Industrial Average (DJIA) climbed significantly, rising 0.7% or 308 points, to close at 46,366. This strong performance helped the blue-chip index recover some of its earlier weekly losses. The S&P 500 (SPX), a broader measure of market health, also posted solid gains, advancing 0.6% to 6,642. Both the Dow and S&P 500 had seen three consecutive days of declines prior to Friday's rebound.
The Nasdaq Composite (IXIC), however, showed a more subdued increase, ticking up 0.4% to 22,469. This relative underperformance for the tech-heavy index was attributed to drops in a handful of influential Big Tech stocks. Despite Friday's gains, all three major indexes finished lower for the week, with the Nasdaq falling about 0.6%, the S&P 500 slipping 0.3%, and the Dow Jones Industrial Average down 0.1%. Still, these indexes remain near their all-time highs set earlier in the week.
A key driver for today's market uplift was the Personal Consumption Expenditures (PCE) price index report for August, the Federal Reserve's preferred inflation gauge. The report indicated that "core" PCE, excluding volatile food and energy prices, rose 2.9% year-over-year and 0.2% month-over-month, matching economists' forecasts. While inflation remains above the Fed's 2% target, the in-line print provided some relief to investors who had been concerned about accelerating price pressures. Consumer sentiment, as reported by the University of Michigan, was weaker than expected, with consumers frustrated by high prices, though their expectations for inflation over the next 12 months slightly ticked down.
Key Upcoming Market Events
The coming week is poised to be highly influential for market direction, with several critical economic data releases and policy decisions on the horizon. The most anticipated event is the Federal Open Market Committee (FOMC) meeting announcement on Wednesday, October 1st. While analysts widely expect the Federal Reserve to maintain current interest rates, their guidance on future monetary policy will be scrutinized for clues on potential rate cuts later in the year.
Before the FOMC meeting, the Personal Consumption Expenditures (PCE) price index for September, the Fed's preferred inflation gauge, is due out on Monday, September 29th. This will provide further insight into inflation trends. Additionally, the non-farm payrolls report for September will be released on Friday, October 3rd, offering crucial data on the health of the U.S. labor market. Other important economic indicators include jobless claims, the ADP private sector job count, and worldwide manufacturing PMI surveys.
On the earnings front, several notable companies are scheduled to report next week. PepsiCo (PEP) is expected to release its results on Tuesday, and Costco (COST) on Thursday. Investors will be closely watching these reports for insights into consumer spending and corporate outlooks.
Major Stock News and Company Highlights
Several individual stocks made significant moves today, influenced by corporate news and broader market trends.
Electronic Arts (EA) shares soared 15% following a report by The Wall Street Journal that the videogame maker is nearing a potentially $50 billion deal to be taken private. This would likely be one of the largest leveraged buyouts of all time.
Intel (INTC) continued its strong performance, jumping a further 4.4% for its fourth consecutive higher session. The chipmaker's shares have risen more than 20% since Monday's close, partly aided by a report suggesting discussions with Apple (AAPL) about a potential stake acquisition.
In the retail sector, shares of furniture firm RH (RH) fell more than 4% after President Trump announced new tariffs on the sector, specifically targeting imported cabinets and upholstered furniture. Conversely, Peterbilt parent Paccar (PCAR) surged roughly 5% after Trump indicated a 25% duty on imported heavy trucks.
BlackBerry Limited (BB) saw its shares jump 8.8% after reporting stronger-than-expected second-quarter 2025 earnings, beating analyst estimates. TD SYNNEX Corporation (SNX) also gained 6.2% after surpassing third-quarter fiscal 2025 earnings expectations.
However, CarMax, Inc. (KMX) plummeted 20.1% after its second-quarter 2025 earnings of $0.64 per share missed the Zacks Consensus Estimate of $1.03 per share. Microsoft Corporation (MSFT) shares fell 0.61% amidst a broader tech decline. Oracle (ORCL) shares also fell 2.7% for their fourth consecutive day of declines.
Post-Market Earnings Announcements
After the market close today, several companies released their quarterly results, which will likely influence trading in the next session. KNOT Offshore Partners LP (KNOP) reported its earnings for the quarter ending June 30, 2025, with a consensus earnings per share forecast of $0.17. MGM Resorts International (MGM) announced its financial results for the third quarter 2025 after the market closed, with a conference call scheduled for Wednesday, October 29, 2025.
As the week concludes, investors will be closely watching the upcoming economic calendar, particularly the inflation data and the Federal Reserve's commentary, to gauge the future trajectory of interest rates and overall market sentiment.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.