Traders also worked through long-awaited US data that had been delayed by earlier government disruptions. September retail sales rose modestly, suggesting consumers slowed spending after several strong months. Meanwhile, the producer price index increased 0.3% in September, matching economist forecasts and reflecting higher energy and food costs.
Portfolio managers said the in-line inflation reading supports expectations for another Fed rate cut in December, even though policymakers now face a sparse data calendar ahead of that meeting. Money markets priced roughly an 80% chance of a quarter-point reduction next month as investors focused on softer labor and spending signals
Consumer confidence data showed the sharpest drop in seven months, highlighting renewed anxiety around the job market and economic outlook. At the same time, some analysts argued that price adjustments to higher tariffs may be nearing completion, which could reduce inflation pressure next year.
Stock-specific moves remained pronounced. Kohl’s surged after it lifted full-year guidance for a second straight quarter, while Abercrombie & Fitch rallied after raising long-term sales and earnings targets. Defense contractor Amentum rose on stronger quarterly revenue, whereas Oracle declined after an analyst downgrade citing balance-sheet concerns.
In other markets, the dollar weakened against major peers and Treasury yields edged lower as private payrolls data signaled cooling hiring momentum. Bitcoin traded below $88,000, and US crude oil prices fell more than 2%, reflecting reports of progress toward a revised peace framework in Ukraine.
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