US stocks opened higher on Friday, supported by a softer-than-expected reading in producer inflation and a slight rebound in Nvidia shares after a volatile week for technology companies.
Softer inflation boosts investor confidence
The Producer Price Index (PPI) for October rose 0.3% month over month, coming in below economists’ estimates of a 0.4% increase. The data offered some relief to investors worried about persistent price pressures and the impact on monetary policy decisions.
Year-on-year, the PPI climbed 6.5%, marking its highest annual gain since November 2022. While the annual rate remains elevated, the lower monthly increase helped ease concerns surrounding the Federal Reserve’s interest rate outlook.
Following the release of the inflation report, the Dow Jones Industrial Average advanced 143 points. The S&P 500 edged up 0.13%, while the Nasdaq Composite slipped 0.13% amid a partial recovery in technology shares.
Analysts noted that markets are fully expecting the Fed to raise interest rates during its upcoming December meeting, with consensus pointing to a 25-basis-point increase. However, the possibility of a more aggressive 50-basis-point hike remains under discussion. Data from CME’s FedWatch tool indicated a 10.7% chance of the larger move.
The latest data on producer prices is providing some breathing room for investors, although persistent inflation suggests the Federal Reserve may maintain a cautious approach to future rate hikes.
Despite signs of waning upward pressure on monthly prices, the elevated annual PPI suggests ongoing inflationary challenges for the US economy.
| Index | Change (%) | Change (Points) |
|---|---|---|
| Dow Jones | +0.41 | +143 |
| S&P 500 | +0.13 | — |
| Nasdaq Composite | −0.13 | — |
Nvidia shares steady after leadership changes
Nvidia, one of the world’s leading artificial intelligence chipmakers, continued to experience volatility following the departure of founder and chief executive Jensen Huang. On Friday, Nvidia shares slipped 0.88%, adding to an 11% loss for the week through Thursday.
Chief Financial Officer Colette Kress was appointed interim CEO while the company’s board seeks a permanent successor. The management shift has sparked questions over the strategic direction of both Nvidia and the broader AI sector, where Nvidia supplies critical hardware to many companies.
Nevertheless, the slight recovery in Nvidia shares provided some support to technology stocks, which had retreated earlier in the week amid uncertainty over the company’s future leadership.
Meanwhile, shares in Cerebras, a California-based AI chipmaker, jumped more than 16% after it lifted its 2026 revenue forecast and confirmed Microsoft as a new customer.
Microsoft, however, saw its stock decline 1.32% after an outage disrupted key services including Outlook and Teams for more than 12 hours.
Mini dictionary: Cerebras is a US-based technology company specializing in AI chip design and large-scale artificial intelligence hardware solutions for cloud and enterprise customers.
Corporate earnings and global risks shape outlook
Corporate earnings results remained generally positive. Out of the 450 S&P 500 companies that had reported by Thursday, 83.6% surpassed analyst forecasts, according to LSEG Data and Analytics.
However, investors remain attentive to international developments, especially in the energy sector. Oil prices climbed for a third straight session after US President Donald Trump stated that the United States did not require an agreement with Iran, raising concerns about a protracted conflict and the risk of energy market disruptions.
Stocks in the crypto sector came under pressure as well. Shares in Coinbase and Strategy declined between 1% and 3%. Bitcoin, the largest cryptocurrency by market capitalization, slid below $70,000 for the first time since August.
Despite recent turbulence, the major US indexes appeared on track for weekly gains, with the Nasdaq headed for a 3.2% rise, the S&P 500 set for a 2.9% advance, and the Dow Jones poised to increase nearly 2%—their strongest weekly results since early August.
