Market Overview - The U.S. stock market showed mixed results with the Nasdaq reaching a record closing high, driven by signals of a tight labor market and controlled inflation, suggesting a potential interest rate cut by the Federal Reserve next week [1][3] - The Dow Jones Industrial Average fell by 273.78 points (0.59%) to 45834.22, while the Nasdaq rose by 98.03 points (0.44%) to 22141.10, and the S&P 500 decreased by 3.18 points (0.05%) to 6584.29 [1] - All three major indices recorded weekly gains, with the Dow up 0.95%, Nasdaq up 2.03%, and S&P 500 up 1.59%, marking the best weekly performance for the S&P 500 since early August [1] Economic Indicators - The Consumer Price Index (CPI) for August rose by 0.4% month-over-month, exceeding the expected 0.3%, but the year-over-year increase of 2.9% met expectations [1][2] - Initial jobless claims unexpectedly surged to 263,000, the highest level since October 2021, significantly above the expected 235,000 [2][3] Federal Reserve Outlook - Analysts suggest that the recent labor market data strengthens the case for a dovish shift by the Federal Reserve, with expectations of a rate cut of 25 basis points at the upcoming meeting [2][3] - Market pricing indicates a 93% probability of a 25 basis point cut, with a 7% chance of a larger 50 basis point cut [5] - Some economists predict that the Federal Reserve may implement a total of 125 basis points in cuts over the next five meetings, with expectations of four consecutive 25 basis point cuts [5][6] Company-Specific News - Adobe reported better-than-expected Q3 earnings and raised its full-year revenue guidance [7] - Goldman Sachs downgraded Novartis to a "sell" rating [8] - Advanced Micro Devices (AMD) began bulk deliveries of NVIDIA's Blackwell Ultra systems [9] - Microsoft signed a non-binding agreement with OpenAI to reshape their partnership [10] - Xpeng Motors unveiled its first range-extended SUV [11]