On Friday, US benchmark equity indexes closed mixed as market participants assessed the latest economic indicators, which included the Federal Reserve's preferred gauge for inflation. Recent data revealed that US consumer spending experienced a decline that was more significant than anticipated for the month of August.
Conversely, the Fed's preferred inflation metric has risen year-over-year, aligning with predictions set by Wall Street. According to government reports, the Fed's core measure, which omits the often volatile food and energy components, increased by 2.7% annually in the last month, a slight uptick from the 2.6% noted in July.
However, on a sequential basis, the core measure saw a decline from 0.2% to 0.1%. Additionally, consumer sentiment in the United States climbed to 70.1 in September, improving from a previous figure of 67.9, as reported by the University of Michigan. The consensus forecast had anticipated a reading of 69.4 based on a survey conducted by Bloomberg.
In commodity markets, November West Texas Intermediate crude oil marked an increase of $0.51, settling at $68.18 per barrel. Meanwhile, November Brent crude, which serves as the global benchmark, was observed rising by $0.48 to $72.08. This surge in oil prices can be attributed to new stimulus measures introduced by China aimed at invigorating demand within its economy.
Simultaneously, Hurricane Helene's impact on output from the Gulf of Mexico has also played a role. However, the potential influx of additional supply expected to enter the market starting in December is moderating the upward momentum of crude oil prices. In the automotive sector, Tesla is on track to announce third-quarter vehicle deliveries that are likely to surpass market expectations, primarily due to robust performance in its significant Chinese market.
A client note from Wedbush Securities highlighted positive trends such as price stabilization and consistent demand, leading to a 2.5% increase in Tesla's stock value. Conversely, shares of Cassava Sciences faced a decline of nearly 11% after it was disclosed that the company has agreed to pay a penalty of $40 million to resolve a case brought forth by the US Securities and Exchange Commission.
The case revolves around allegations regarding misleading statements pertaining to the results of a phase 2 trial associated with its Alzheimer's disease drug candidate..