US open: Major indices trade higher as inflation surprise fuels rate‑cut hopes

(Sharecast News) - Major indices were in the green early on Friday as sentiment continued to be buoyed by Thursday's cooler-than-expected consumer price index reading.

As of 1520 GMT, the Dow Jones Industrial Average was up 0.59% at 48,232.84, while the S&P 500 advanced 0.73% to 6,824.18 and the Nasdaq Composite came out of the gate 0.97% firmer at 23,230.31.

The Dow opened 280.99 points higher on Friday, extending gains recorded in the previous session as the blue-chip snapped a four-day losing streak after the latest CPI print showed consumer prices rose just 2.7% yearonyear in November, undershooting forecasts and fuelling hopes that the Federal Reserve could begin cutting rates in 2026.

Some economists, however, cautioned that the report, the first since the autumn Federal government shutdown, may see methodologyrelated distortions that could prompt a rebound in December's figures.

Traders were bracing for potential volatility on Friday as "quadruple witching" approaches, with options on four asset classes set to expire. More than $7.1trn in notional exposure was due to roll off - marking the largest options expiry on record.

On the macro front, consumer sentiment was revised slightly lower in December, according to the latest University of Michigan survey. The headline index was marked down to 52.9 from a preliminary reading of 53.3, with both the current conditions gauge slipping to 50.4 from 50.7 and the expectations index revised to 54.6 from 55. Yearahead inflation expectations were nudged higher to 4.2%, up from the initial 4.1% estimate and unchanged from the prior month, while the fiveyear outlook held steady at 3.2%.

Elsewhere, US existing home sales ticked higher in November, according to the National Association of realtors, marking a third consecutive monthly increase. Sales increased 0.5% month-on-month to an annualised 4.13m, slightly below the 4.2m expected but still the strongest level seenin nine months, as easing mortgage rates helped support activity despite recent soft labour data.

In the corporate space, Nike traded lower in early action after the sportswear giant reported weaker secondquarter revenue in Greater China and flagged pressure on gross margins from higher tariffs, while cruise line operator Carnival posted a fourthquarter adjusted earnings beat, aided by strong closein demand and tight cost control, alongside record full-year profit and revenues of $4.5bn and $26.6bn, respectively, leading the group to reinstate its dividend.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $37.28 3.43%

Caterpillar Inc. (CAT) $581.17 2.71%

Boeing Co. (BA) $213.50 2.51%

Goldman Sachs Group Inc. (GS) $893.70 1.99%

Dow Chemical Co. (DOW) $23.35 1.35%

Unitedhealth Group Inc. (UNH) $331.91 1.15%

3M Co. (MMM) $163.57 1.12%

JP Morgan Chase & Co. (JPM) $316.33 1.06%

Walt Disney Co. (DIS) $112.64 0.69%

International Business Machines Corporation (CDI) (IBM) $302.04 0.53%

Dow Jones - Fallers

Nike Inc. (NKE) $59.41 -9.48%

Home Depot Inc. (HD) $349.43 -1.57%

Verizon Communications Inc. (VZ) $40.04 -0.93%

McDonald's Corp. (MCD) $318.66 -0.31%

Salesforce.Com Inc. (CRM) $257.10 -0.29%

Apple Inc. (AAPL) $271.39 -0.17%

Johnson & Johnson (JNJ) $208.21 -0.05%

S&P 500 - Risers

Micron Technology Inc. (MU) $264.42 17.25%

Lam Research Corp. (LRCX) $170.90 10.27%

Seagate Technology Plc (STX) $301.08 8.44%

Oracle Corp. (ORCL) $193.20 7.32%

Carnival Corp. (CCL) $30.33 7.02%

Applied Materials Inc. (AMAT) $259.68 4.60%

Norwegian Cruise Line Holdings Ltd (NCLH) $22.57 4.35%

Intel Corp. (INTC) $37.28 3.43%

Arista Networks Inc. (ANET) $128.48 3.09%

FMC Technologies Inc. (FTI) $44.86 3.08%

S&P 500 - Fallers

Lamb Weston Holdings, Inc. (LW) $47.54 -19.88%

Nike Inc. (NKE) $59.41 -9.48%

ConAgra Brands Inc (CAG) $17.13 -3.76%

Whirlpool Corp. (WHR) $74.78 -2.84%

Diamondback Energy Inc. (FANG) $150.01 -2.64%

Alexandria Real Estate Equities Inc. (ARE) $47.67 -2.61%

D. R. Horton Inc. (DHI) $147.58 -2.52%

CME Group Inc. (CME) $267.31 -2.35%

Carmax Inc. (KMX) $38.50 -2.14%

Darden Restaurants Inc. (DRI) $188.77 -2.13%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $264.42 17.25%

Lam Research Corp. (LRCX) $170.90 10.27%

Seagate Technology Plc (STX) $301.08 8.44%

Applied Materials Inc. (AMAT) $259.68 4.60%

Mercadolibre Inc. (MELI) $1,996.50 4.19%

Qvc Group Inc Series A (QVCGA) $11.53 3.83%

Intel Corp. (INTC) $37.28 3.43%

NetEase Inc. Ads (NTES) $137.50 2.74%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $601.84 2.71%

Analog Devices Inc. (ADI) $278.18 2.63%

Nasdaq 100 - Fallers

Charter Communications Inc. (CHTR) $206.49 -1.51%

Dollar Tree Inc (DLTR) $126.54 -1.41%

O'Reilly Automotive Inc. (ORLY) $91.89 -1.03%

Kraft Heinz Co. (KHC) $24.61 -0.55%

Adobe Systems Inc. (ADBE) $353.44 -0.34%

Apple Inc. (AAPL) $271.39 -0.17%