Nasdaq Index: Tech Stocks Jump as CPI Miss Fuels Bullish US Stock Market Forecast

The delayed CPI reportshowed headline inflation rising 3% year-over-year, below the 3.1% forecast, with the monthly increase of 0.3% also coming in under the expected 0.4%. Core CPI registered 0.2% monthly and 3% annually, both lighter than the 0.3% and 3.1% estimates respectively.

CPI Report Clears Path for Continued Fed Easing

September’s inflation figures delivered precisely what traders needed to maintain confidence in further monetary policy loosening. The report represents the first major economic release since the government shutdown began, giving investors a long-awaited pulse check on the economy. Around 99% of bets remain on a quarter-point cut next week, while around 96% of traders expect another slash in December.

The ongoing government shutdown has created a data drought, with most economic releases including weekly and monthly jobs figures remaining postponed, giving the Fed little new information to challenge its current course.

Technology and Financials Lead Sector Performance

The Technology sector is dominating morning action, surging 1.24% to 5,768.66, benefiting from strong semiconductor momentum and AI-related optimism.

Financials are posting the second-strongest gain at 1.15%, reaching 884.04, while Utilities are advancing 1.17% to 463.96. Communication Services is climbing 0.99% to 426.35.

Energy is bucking the trend, declining 0.51% to 678.19, while Materials is slipping 0.28% to 564.37.