Stock Index

Nasdaq futures fell nearly 400 points following recent AI-related developments, while Dow futures slipped about 150 to 200 points and S&P 500 futures declined 40 points. Oil prices climbed after Saudi Arabia shut a key East-West pipeline following attacks, sending Brent up 3% to $108 a barrel and pushing WTI close to $103. On the macro front, the U.S. August core CPI rose 0.3% month-on-month, above expectations of 0.2%, while the annual CPI increased 3.4% in line with forecasts.

U.S. stocks finished higher on Friday after an acceleration in consumer prices reinforced expectations that the Federal Reserve will raise interest rates at its policy meeting on Wednesday. The Dow, S&P 500 and Nasdaq all advanced, while Dell jumped to a record high. Rate futures imply a nearly 90% chance of a hike, according to the CME FedWatch tool. Oil prices fell on the day but were still up around 9% for the week amid concerns about Middle East supply disruptions.

The Dow Jones Industrial Average jumped on Friday after an unexpected CPI inflation report. The data showed inflation cooling more than expected, easing worries about further Federal Reserve rate hikes and lifting broader market sentiment. Nvidia rebounded early, while Apple rose and moved closer to an all-time high.

U.S. stocks rebounded on Friday, with the Dow up 390 points while the Nasdaq and S&P 500 rose 1% and 0.9%, respectively, putting the S&P 500 on track to end a four-day losing streak. Oil prices pulled back, easing inflation concerns, as Brent crude fell 3% to $104.42. U.S. consumer prices rose 3.4% from a year earlier in March, in line with expectations, helping calm nerves about further Federal Reserve rate increases.

U.S. consumer inflation rose 3.4% year-on-year in August and increased 0.4% from July, both in line with market expectations. Core CPI rose 0.3% month-on-month, slightly above the 0.2% forecast, while the core rate eased to 2.4% year-on-year. After the data, markets lifted the implied probability of a Federal Reserve rate increase in September to 82%.

Indian equities opened sharply lower on Friday as escalating tensions in West Asia pushed Brent crude above USD 108 a barrel. The Nifty 50 opened down 0.88% at 23,270.30, while the BSE Sensex slipped 0.79% to 74,309.16. Nifty Metal led sector losses at the open, down 2.46%.

India’s benchmark equity indices opened sharply lower on Friday, with the Nifty 50 down 0.88% and the Sensex off 0.79%, as escalating West Asia tensions and a jump in crude prices stoked concerns over higher energy import costs. Brent crude was trading around USD 108.27 per barrel. Analysts said persistently high oil prices could materially weigh on India’s GDP growth and corporate earnings.

India’s Sensex was down more than 500 points in pre-open trade on Friday, while the Nifty slipped below 23,300. Asian markets also moved lower as rising U.S. bond yields and elevated oil prices weighed on risk appetite. WTI crude futures briefly touched $110 per barrel before easing, while gold and silver futures fell amid firmer expectations of a U.S. Federal Reserve rate hike.

A global selloff in bond markets has pushed government yields to multiyear highs, while escalating tensions in the Middle East lifted Brent crude to nearly $US109 a barrel and intensified inflation concerns. Investors are increasingly worried that highly valued equity markets are nearing a tipping point, and that central banks may be forced to raise rates in a way that triggers a recession. The Australian share market’s selloff has deepened amid those fears. A US Treasury debt buyback came in below expectations and did little to calm the bond-market turbulence.

Asian stocks and government bonds weakened as rising oil prices and fresh inflation data pressured risk appetite. The MSCI Asia Pacific Index fell 1.3%, with Japan and South Korea leading losses. Brent crude extended gains after climbing to almost $110 a barrel, lifting U.S. Treasury yields to multiyear highs. Faster-than-expected producer-price growth reinforced market expectations for a Federal Reserve rate increase.