Stocks Rally to Record Highs on Favorable US CPI Report

Market Performance - The S&P 500 Index rose by +0.79%, the Dow Jones Industrials Index increased by +1.01%, and the Nasdaq 100 Index gained +1.04% on Friday [1] - December E-mini S&P futures rose by +0.74%, and December E-mini Nasdaq futures increased by +1.00% [1] Economic Indicators - The S&P 500 and Nasdaq 100 indexes reached new record highs, supported by a slightly weaker-than-expected US CPI report [2] - The September CPI report showed a +0.3% month-over-month increase and +3.0% year-over-year, which was below market expectations of +0.4% and +3.1% respectively [2] - The September core CPI report also came in at +0.2% month-over-month and +3.0% year-over-year, weaker than expectations of +0.3% and +3.1% [2] - The October S&P US manufacturing PMI rose by +0.2 to 52.2, exceeding expectations of no change [3] - The October S&P US services PMI increased by +1.0 to 55.2, stronger than the anticipated decline to 53.5 [3] Consumer Sentiment - The final October University of Michigan US consumer sentiment index fell by -1.4 points to 53.6, which was below market expectations of a -0.5 point drop to 54.5 [4] Trade Relations - President Trump announced the termination of trade negotiations with Canada, influenced by an anti-tariff advertisement from Ontario [5] - The advertisement featured former President Reagan advocating for free trade, which Trump claimed was deceptive and aimed at influencing the US Supreme Court regarding his tariffs [6] - Lower courts have ruled Trump's reciprocal tariffs illegal, and a Supreme Court ruling upholding this could limit his tariff powers and require refunds for collected tariffs [6]