Futures rise as Amazon shines, inflation continues cooling

Stock futures rose Friday as solid earnings from Amazon (AMZN) and Intel (INTC) eased worries around Big Tech, in the rundown to the release of a closely watched US inflation reading.

Nasdaq 100 (^NDX) futures led the gains, up over 0.8% after tech stocks closed Thursday deep in the red. S&P 500 (^GSPC) futures added about 0.4%, while Dow Jones Industrial Average (^DJI) futures hugged the flatline.

The moves point to a sunnier start to the last session in a tough week, which has seen the S&P 500 threaten to join the Nasdaq Composite (^IXIC) in correction territory amid a sell-off fueled by mixed earnings from megacap techs.

On Friday, the Federal Reserve’s preferred inflation metric showed prices continued to cool in September — a critical data point the Federal Reserve will consider as it weighs its next interest rate decision on Nov. 1.

The Personal Consumption Expenditures (PCE) Index grew 3.4% year over year in September, down from 3.5% the month prior and in line with expectations. “Core” PCE, which excludes the volatile food and energy categories, grew 3.7%, down from 3.9% from the month prior and in line with what economists surveyed by Bloomberg had expected.

Month-over-month, core PCE rose 0.3% in September, an uptick from the 0.1% rise seen in August, which was the lowest rate since November 2020.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Uncertainty around whether the Fed will raise interest rates again this year have weighed on stocks this year. With the central bank’s next meeting scheduled for Nov. 1, the time to decide is narrowing.

The latest US GDP reading came in hot, a sign that the Fed’s higher-for-longer stance isn’t holding back the American consumer. But some analysts are questioning how long that resilience can last, given recurring words of caution in companies’ outlooks alongside earnings.

Following the release of Friday’s inflation data, markets were pricing in a roughly 99% chance the…