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LIVE MARKETS-Wall Street set to gain ground as inflation data keeps Fed rate cut bets alive

ReutersSep 26, 2025 1:14 PM
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  • U.S. equity index futures rise: Dow futures leads with 0.4% gain
  • Euro STOXX 600 index up ~0.8%
  • Dollar dips; gold, crude, bitcoin rise
  • U.S. 10-Year Treasury yield ticks lower to ~4.17%

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WALL STREET SET TO GAIN GROUND AS INFLATION DATA KEEPS FED RATE CUT BETS ALIVE

Wall Street's main indexes were set for modest gains at the open on Friday, after three straight sessions of declines, as a largely-inline inflation report kept bets alive that the Federal Reserve could cut interest rates next month.

The Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, versus the prior 0.2% rise in July and matched the estimate of economists polled by Reuters.

"We believe the central bank remains on track to cut interest rates again at its next meeting in October, since it's clear that inflation is stable enough to handle lower interest rates," said Clark Bellin, president and chief investment officer, Bellwether Wealth.

The data followed Thursday's stronger-than-expected economic prints, which had cooled rate-cut expectations a bit and weighed on equities.

The next crucial data point due next Friday's nonfarm payrolls report.

Meanwhile, investors broadly shrugged off fresh tariff announcements from U.S. President Donald Trump's latest sweeping import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, set to come into force next week.

Shares of Eli Lilly LLY.N rose 0.9% and Viking Therapeutics VKTX.O added 1.4% in premarket trading. Truck maker Paccar PCAR.O, which manufactures most of its trucks for the U.S. market domestically, gained 5.6%.

"We remain in a headline driven stock market, even though there has been fading uncertainty on many of the market-moving headlines such as tariffs," Bellin said.

So far the three main indexes look set to round up Friday with their steepest weekly decline in two months. Defying September's reputation of being a historically weak month, the indexes are charging into the final days with strong quarter-end and monthly gains.

Here's a market snapshot as of 9 a.m. ET

(Medha Singh)

EARLIER ON LIVE MARKETS:

RALLY IN BANKING STOCKS STILL HAS LEGS CLICK HERE

GERMAN OPPORTUNITY? CLICK HERE

EUROPEAN BOURSES SHRUG OFF TRUMP'S TARIFFS CLICK HERE

EUROPE BEFORE THE BELL: TRUMP DOES IT AGAIN CLICK HERE

STOCKS COP ONE-TWO PUNCH CLICK HERE

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