September 26, 2025 (Friday)
Economic Indicators
- PCE Inflation Rate (August): In line with expectations, moving closer to the Fed's target.
- MBA Mortgage Applications: Detailed figures released, reflecting trends in the housing market.
- GDPNow Model (Atlanta Fed): Q3 growth forecast revised upward from 3.3% to 3.9%.
Key Financial News
- Stocks rebound: A rally for the first time in three days as inflation data meets expectations; S&P 500 and Nasdaq post weekly losses.
- Trump announces new tariffs: Targeting pharmaceuticals and semiconductors, the Dow rises, but concerns of renewed trade friction emerge.
Analysis
The stability of the PCE data leaves room for an additional Fed rate cut, driving the stock rebound. The upward revision of GDPNow also boosted growth expectations, but the Trump tariffs raise the risk of higher import prices, creating concerns of resurgent inflation. The market remained on a downward trend for the week, exposing the weakness of the September market. Next week's employment data will be key.