Stocks closed moderately lower as September consumer prices rose more than expected, with the Consumer Price Index (CPI) easing to +2.4% year-on-year from +2.5% in August. Initial unemployment claims also surged to a 14-month high of 258,000, indicating a weakening labor market.
Middle East tensions continue to weigh on investor sentiment, particularly with ongoing conflicts involving Israel and Hezbollah. The markets are also preparing for the Q3 earnings season, with expectations of a +4.7% increase in S&P 500 earnings compared to the previous year.
In the energy sector, oil prices rose, with WTI crude up 2.1%, as Hurricane Milton's impact on Florida is assessed. This week, BP reported flat third-quarter output, negatively affecting its stock price.
European stock markets traded lower, influenced by lackluster UK growth data and anticipation of key US bank earnings. The European Central Bank is expected to ease policy further as inflation in Germany has fallen below its target.
Notable stock movements included Delta Air Lines down nearly 1% after reporting weaker-than-expected earnings, while GXO Logistics surged over 14% amid reports of a potential sale.