Stocks Rise as U.S. Inflation Comes in Soft | The Close 10/24/2025

About this video

• Video Title: Stocks Rise as U.S. Inflation Comes in Soft | The Close 10/24/2025
• Channel: Bloomberg Television
• Speakers: Romaine Bostick, Katie Greifeld, Betsy Stevenson, Scott, David Bahnsen, Tim, Carol Massar, Greg Hart, Norah
• Duration: 01:30:26

Overview

This video from Bloomberg Television discusses the stock market's rise following a softer-than-expected U.S. inflation report. The hosts, Romaine Bostick and Katie Greifeld, along with various guests, analyze the implications of the Consumer Price Index (CPI) data on potential Federal Reserve rate cuts, the strength of the labor market, consumer sentiment, and the impact of AI on the economy and specific companies. They also touch upon geopolitical trade relations and specific company earnings.

Key takeaways

• Inflation Report Boosts Stocks: A cooler inflation report led to a rally, pushing the S&P 500 to all-time highs, with a 1.2% increase in big tech stocks.
• Fed Rate Cut Expectations: The inflation data solidified market expectations for two more rate cuts this year, with a potential for more in 2026, although future cuts are less certain.
• Labor Market Concerns: Despite some encouraging inflation data, the labor market shows signs of weakness with company layoffs, creating a complex situation for the Federal Reserve balancing its dual mandate.
• Consumer Sentiment: Consumer sentiment has slipped, with shoppers becoming more cautious about spending and looking for value, especially with the holiday season approaching.
• AI's Economic Impact: Artificial intelligence is seen as a major tailwind for the economy and a driver for upskilling and reskilling, with companies like Coursera benefiting from increased interest in AI-related content.
• Company Performance: While the overall market is up, individual companies like Deckers experienced significant drops after earnings reports, while others like Ford and Coinbase saw gains.
• Geopolitical Trade: Upcoming meetings between U.S. and Chinese leaders highlight ongoing trade tensions and the potential for escalation, with a call for better communication channels between the two militaries.
• Consumer Spending Trends: Retailers are adapting to consumer behavior, focusing on value-oriented products and adjusting promotional strategies to attract shoppers during the holiday season.
• Data Center Growth: The push to accelerate data center connections to power grids, driven by AI demand, is expected to boost energy companies like Constellation Energy, but could also lead to increased electricity bills.
• Market Concentration: Concerns exist about the increasing market concentration in a few large tech companies, reminiscent of past market bubbles, though some argue current valuations are justified by earnings growth and AI potential.