Wall Street split: Bullish stocks, Wary bonds 12/09/2025

HOT stories for today

US market wrap:

• The Dow Jones Industrial Average surged over 600 points on Thursday, while the S&P 500 rose 0.9% and the Nasdaq Composite added 0.7%. All three benchmarks ended at record highs, with the Dow closing above 46,000 for the first time. 
• August’s Consumer Price Index registered a 0.4% monthly increase, topping the 0.3% forecast by economists surveyed by Dow Jones. On an annual basis, inflation climbed 2.9%, matching consensus expectations. Still, the inflation release was largely eclipsed by weekly jobless claims, which unexpectedly spiked to their highest level since October 2021.

Wall Street split: Bullish stocks, Wary bonds

• Stocks and bonds are sending conflicting signals. While equity investors focus on AI-driven growth and consumer resilience, bond buyers are piling into long-term Treasuries, pulling the 10-year yield near 4% amid recession worries.
• August CPI came in at 0.4% monthly and 2.9% annually, but sticky services inflation and tariff pressures remain in the background. Rising jobless claims, the highest since 2021, added to concerns that the Fed’s expected rate cuts may be less about fine-tuning and more about cushioning a slowing economy. The standoff leaves traders asking whether the equity rally can outlast the bond market’s warning signs.

Stocks on the move:

• Adobe (ADBE): Shares advanced nearly 3% in late trading after the software company reported fiscal third-quarter earnings ahead of forecasts. Adobe also raised its revenue outlook for the digital media division.
• RH (RH): The upscale home furnishings retailer fell 6% after hours as quarterly revenue came in at $ 899 million, below the $ 905 million expected by analysts surveyed by LSEG.
• Super Micro Computer (SMCI): The AI hardware provider said it has begun mass shipments of its Nvidia Blackwell Ultra systems to clients worldwide, lifting the stock more than 4% in extended trade.
• SL Green Realty (SLG): The real estate investment firm ticked up less than 1%  after Citi raised its rating to buy from neutral.

Watchlist: ADBE, RH, SMCI, SLG, AVGO, ORCL, NVDA, RBLX  

Today’s action

• Japan’s Nikkei 225 extended gains after setting a fresh record high on Thursday. In South Korea, SK Hynix jumped after announcing the completion of its HBM4 chip development. Hong Kong’s Hang Seng Index climbed 1.64%, while the mainland CSI 300 edged up 0.19%. Chinese tech names traded in Hong Kong outperformed, with Alibaba (9988.HK) up more than 6% and Baidu (9888.HK) soaring over 10% as both firms rolled out in-house chips to power artificial intelligence training.
• In the U.S., stock futures were steady overnight after Wall Street’s record-setting session. Traders interpreted soft labor data and subdued inflation as signs that the Federal Reserve will move to cut rates next week. Dow, S&P 500, and Nasdaq futures all hovered near flat. On the data front, consumer sentiment and inflation expectations are due Friday.

Bitcoin

• Bitcoin (BTC) hovered near 115,000 dollars on Thursday as fresh U.S. CPI data reinforced expectations for Fed rate cuts and sparked sharp volatility at the Wall Street open. Market views were split: some traders expect BTC/USD to mirror prior CPI reactions by rallying before dipping to new lows, while others see scope for continued upside.
• Adding to the uncertainty, a 4.3 billion dollar options expiry looms, with bulls holding the advantage, but fragile labor data and skepticism over AI-driven profitability clouding sentiment.
  Watchlist: BTC: 99,000–124,800 | ETH: 4,000–4,800 | SOL: 200–220

Forex

• The Japanese yen stayed under pressure in Friday’s Asian session, slipping further against the dollar amid political uncertainty at home. Concerns that Japan’s next prime minister could push the Bank of Japan to keep rates lower weighed on the currency, even as local data kept alive hopes of a hike later this year. A risk-on market mood and the wide Fed-BoJ policy gap continue to favor USD/JPY upside.
• EUR/USD eased toward 1.1725 after the European Central Bank held its deposit rate steady at 2.0% on Thursday. Dollar strength kept the pair subdued, though expectations for a 25-basis-point Fed rate cut on September 17 may cushion losses. Traders now await German HICP inflation figures and U.S. consumer sentiment data for fresh direction.
  Watchlist: EUR/USD: 1.1000–1.1760 | USD/JPY: 140–150

Basic Materials

• Gold held firm above 3,650 dollars in Friday’s Asian trade, staying close to record highs as weak U.S. labor data fueled bets on Fed easing and dragged the dollar lower. Geopolitical tensions and trade uncertainty added to safe-haven demand.
• WTI crude slipped to about 61.80 dollars, pressured by oversupply fears after OPEC output increases and a surprise 4 million barrel U.S. inventory build. Softer demand weighed further, though geopolitical risks may cap losses.
  Watchlist: Gold: 2,600–3,700 | US Oil: 55.60–75.80

Economic Calendar (EST):

10:00 am: USD Consumer Sentiment
10:00 am: USD Inflation Expectations



Earnings:

No major earnings today!




The TEFS Analyst team wishes you a successful day!