Market Rebounds Midday as Inflation Data Aligns with Expectations, Tech Leads Gains

Market Overview - U.S. equity markets are experiencing a positive trajectory as investors react to inflation data that met expectations, alleviating concerns from a three-day losing streak for major indexes [1][2] - The Personal Consumption Expenditures (PCE) price index rose 2.7% year-over-year in August, slightly up from July's 2.6%, while Core PCE increased by 2.9%, aligning with forecasts [1][4] Major Index Performance - The Dow Jones Industrial Average (DJIA) halted its three-session losing streak, advancing approximately 0.3%, while the S&P 500 (SPX) rose around 0.2% [2] - The Nasdaq Composite (COMP) remained virtually unchanged after initially opening higher [2] Corporate Highlights - Microsoft (MSFT): Shares are in focus after Morgan Stanley raised its price target to $625 from $582, maintaining an "Overweight" rating and naming it a "Top Pick" in large-cap software. Despite this, shares fell 0.61% due to broader tech declines [6][11] - Tesla (TSLA): The stock experienced volatility, surging 6.4% after Elon Musk's $1 billion stock purchase, but concerns over declining EV sales led to a slump of over 4% on Thursday [6][7] - Nvidia (NVDA): The stock showed volatility but reported a 56% year-over-year increase in data center revenue to $41.1 billion in Q2, raising questions about valuation sustainability [11] - CarMax (KMX): Shares plummeted 20.1% after reporting Q2 earnings of $0.64 per share, missing estimates [11] - TD SYNNEX Corporation (SNX): Shares gained 6.2% after reporting earnings of $3.58 per share, surpassing estimates [11] - BlackBerry (BB): Shares jumped 8.8% after reporting earnings of $0.04 per share, beating estimates [11] - Intel (INTC): Stock surged 9% on Thursday and added 3.5% today following reports of discussions with Apple regarding a stake purchase [11] - Oracle (ORCL): Shares fell 5.6% on Thursday and 2.5% today due to concerns over AI monetization [11] - Amazon (AMZN): Shares ticked higher after agreeing to pay $2.5 billion to settle an FTC lawsuit over deceptive subscription practices [11] Economic Catalysts - Upcoming economic indicators include job openings data, consumer confidence, home price growth, and ISM manufacturing and services indexes, which could influence market sentiment [5] - The Federal Reserve's monetary policy decisions will be shaped by the August PCE figures, with expectations of potential rate cuts by the end of the year [4]