U.S. equities are showing a strong rebound in afternoon trading on Friday, September 26, 2025, as investors digest a key inflation report that largely met expectations, easing concerns about the Federal Reserve's future monetary policy. After a three-session losing streak, major indexes are pushing higher, signaling renewed optimism in the market.
Market Indexes Show Resilience
As afternoon trading progresses, the major U.S. stock indexes are firmly in positive territory. The Dow Jones Industrial Average advanced 0.8%, reaching 46,316 points, demonstrating a significant recovery. The benchmark S&P 500 also saw robust gains, climbing 0.5% to 6,641. Meanwhile, the tech-heavy Nasdaq Composite is up 0.3%, trading at 22,455, though it experienced some earlier fluctuations due to influential Big Tech stocks. The Russell 2000, representing small-cap stocks, also registered a gain of 0.34% by midday, indicating a broader market uplift. This positive movement comes after a week that saw indexes retreat from record highs set earlier in September.
The catalyst for today's market strength appears to be the August Personal Consumption Expenditures (PCE) inflation report, a preferred gauge for the Federal Reserve. The report indicated that consumer prices rose 2.7% year-over-year in August, aligning with economists' expectations and marking a slight acceleration from July's 2.6% increase. Core PCE inflation, excluding volatile food and energy components, also matched forecasts at 2.9% year-over-year. This in-line data has assuaged fears of persistent price pressures that could delay anticipated interest rate cuts, providing a much-needed boost to investor sentiment.
Adding to the economic picture, the University of Michigan's Consumer Sentiment survey for August came in at 55.1, slightly below the 55.4 expectation. Despite this, U.S. consumer spending showed resilience, rising 0.6% in August, surpassing expectations and following a 0.5% increase in July. This uptick in spending is seen as a supportive factor for economic growth as the third quarter progresses, with real consumer spending growth for Q3 currently running at 2.8%, higher than Q2's 2.5%.
Upcoming Market Events to Watch
Looking ahead, the market will turn its attention to several key economic releases and corporate earnings reports that could influence trading in the coming weeks. The most significant event on the horizon is next week's U.S. employment report, which includes crucial data on nonfarm payrolls, the unemployment rate, and wage growth. Nonfarm payrolls are expected to rise by 39,000 in September, a modest increase from August's 22,000, with the unemployment rate forecast to hold at 4.3%. These figures will be closely scrutinized for clues regarding the Federal Reserve's policy path for the remainder of the year.
Other important economic indicators next week include worldwide manufacturing Purchasing Managers' Index (PMI) surveys, flash Eurozone inflation numbers, and monetary policy decisions from central banks in India and Australia. Domestically, investors will also monitor August Pending Home Sales and the September Dallas Fed Manufacturing Index.
On the corporate earnings front, the week of September 29 will see five S&P 500 companies report their quarterly results. Notable upcoming earnings include Carnival (CCL) on September 29, Lamb Weston Holdings (LW) and Nike (NKE) on September 30, and Conagra (CAG) on October 1. Further out, MGM Resorts International (MGM) is scheduled to release its third-quarter 2025 financial results after the market closes on Wednesday, October 29, 2025.
Major Stock News and Sector Performance
Afternoon trading has seen several individual stocks making headlines. Chipmaker Intel (INTC) continued its impressive run, jumping a further 6% today and leading the S&P 500. This follows a nearly 9% surge yesterday, bringing its gains to over 20% since Monday's close. The rally is partly fueled by reports that Apple (AAPL) has discussed acquiring a stake in the company. Analysts at Wedbush have significantly raised their price target for Intel, from $500 to $600, citing an "accelerated AI path" for the company.
In other corporate news, Paccar (PCAR) surged approximately 5% after President Trump announced a 25% duty on imported heavy trucks, a move that appears to benefit domestic manufacturers. Conversely, shares of home goods retailers RH (RH) and Williams-Sonoma (WSM) pulled back around 3% and 1% respectively, following President Trump's announcement of new tariffs that could impact import prices for home furnishings.
Boeing (BA) is also soaring, up 4.4%, after the FAA indicated it would allow the company to sign off on its own planes again, a significant development for the aerospace giant.
Meanwhile, Oracle (ORCL) shares were down a further 2% today, extending yesterday's 5.6% decline. This comes after President Trump signed an executive order to bring TikTok's U.S. operations under American control, with Oracle co-founder Larry Ellison reportedly part of the group involved. Amazon (AMZN) saw a modest rise of less than 1% today, recovering slightly after a 1% dip yesterday following a $2.5 billion settlement with the FTC over alleged deceptive subscription practices for Prime memberships.
In the retail sector, Costco Wholesale (COST) fell 1.9% despite reporting stronger-than-expected profits for the latest quarter. The decline is attributed to a slowdown in membership renewal rates and underlying revenue growth falling short of analyst expectations, compounded by a price target cut from JP Morgan.
Several companies released earnings today, leading to significant stock movements. BlackBerry Limited (BB) jumped 8.8% after reporting second-quarter 2025 earnings of $0.04 per share, beating analyst estimates. TD SYNNEX Corporation (SNX) also saw a gain of 6.2% after its third-quarter fiscal 2025 earnings of $3.58 per share surpassed expectations. However, CarMax, Inc. (KMX) plummeted 20.1% after its second-quarter 2025 earnings of $0.64 per share missed the Zacks Consensus Estimate. Microsoft Corporation (MSFT) shares fell 0.61% amidst a broader tech decline, even as Jim Cramer highlighted it as a key player in the booming AI sector.
The pharmaceutical sector is performing well today, with drugmakers like Eli Lilly (LLY) and Pfizer (PFE) nudging higher. Pharma stocks, as tracked by the VanEck Pharmaceutical ETF (PPH), are up approximately 0.6% after President Trump announced a new tariff plan for drugmakers. Analysts suggest that companies had already prepared for such a move, potentially viewing it neutrally or even slightly positively as a sign of de-escalation in tariff disputes.
In the broader market, artificial intelligence continues to be a dominant theme, driving significant growth in the tech sector. Analysts like Jim Cramer emphasize a "two-speed economy," where AI-driven technology companies are thriving, while consumer-facing sectors struggle with high interest rates. This bifurcation underscores the importance of selective investing in the current market environment.
Finally, in the cryptocurrency space, Bitcoin (BTCUSD) fell below $110,000 on Thursday evening, marking a more than 5% decline for the week. Other altcoins, including Ether (ETHUSD) and Solana (SOLUSD), also experienced slides, dragging the estimated total value of the crypto market under $4 trillion.
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.