S&P futures saw an early rise on Friday ahead of a key inflation report that could influence the Federal Reserve’s decision on additional rate cuts this year. Dow Jones Industrial Average futures increased by 64 points, a 0.1% rise, while S&P futures climbed 0.3% and Nasdaq 100 futures gained 0.5%. The futures showed little reaction to President Donald Trump’s announcement about ending trade negotiations with Canada, a decision sparked by an Ontario advertisement featuring former President Ronald Reagan. Investors are particularly focused on the September Consumer Price Index report, delayed due to the ongoing U.S. government shutdown, as it represents the final economic indicator before the Fed’s October meeting.

Economists expect the September CPI to show a 3.1% annual increase, up 0.2 percentage points from August, with core CPI—excluding food and energy—projected to remain at 3.1%. A CPI reading in line with or below expectations could support the Federal Reserve’s plan to reduce interest rates during its next two meetings this year, while a stronger-than-expected reading could dampen the bullish sentiment and pressure the markets. Vishal Khanduja noted that the absence of clean economic data adds uncertainty for both the Fed and investors, emphasizing that Friday’s CPI should provide more clarity, particularly regarding the impact of tariffs on inflation.

Several strong earnings reports bolstered market sentiment on Friday. Intel shares surged 7% in early trading after reporting third-quarter sales that exceeded analysts’ forecasts, while Procter & Gamble rose 2% following better-than-expected first-quarter earnings and revenue. Target also saw a modest increase in share value after announcing an 8% reduction in its workforce, marking the retailer’s first significant layoffs in a decade. These corporate results added optimism ahead of the peak of the third-quarter earnings season.

The three major U.S. indexes ended the prior session higher, led by technology stocks and positive earnings momentum. The S&P 500 gained nearly 0.6%, the Dow Jones Industrial Average rose 144 points or 0.3%, and the Nasdaq Composite climbed 0.9%, driven by AI-focused companies like Nvidia and Oracle. Equities are set to post weekly gains after Thursday’s activity offset Wednesday’s losses, with the S&P 500 poised for a 1.1% increase and both the Nasdaq and Dow nearly 1.2% higher so far this week, as futures continue to reflect optimism ahead of the forthcoming inflation data.