Boeing stock increases by over 3% before market opens due to FAA easing restrictions on airplane deliveries.

The US core PCE price index for August remained stable at 2.9% in Friday’s early market report. The unchanged figure matched expectations and allowed for a surge in stock index futures, a brief drop in the US dollar index, and a slight rise in gold prices. CNBC highlighted the stability in core PCE inflation as a positive indicator for the Federal Reserve’s upcoming interest rate decisions. Despite the 2% inflation target, policymakers intend to proceed with two more anticipated 25-basis-point rate cuts by year-end.

Pre-market trading observations revealed mixed results among top tech stocks, with Intel seeing a rise of over 4% and Apple experiencing a decline of nearly 1%. On the other hand, Chinese stocks faced a downward trend. Alibaba fell by nearly 2%, while Kingsoft Cloud saw a 7% decline. In contrast, Li Auto and XPeng Motors rose by more than 4%.

President Trump’s announcement of high tariffs on furniture led to notable pre-market drops for retailers such as Wayfair and RH. The administration is evaluating a new strategy designed to reduce the US dependence on overseas-made semiconductors. This plan aims to boost domestic production, reshape supply chains, and enforce a “1:1” production-to-import ratio on chip manufacturers. Failure to adhere to this policy could result in companies facing tariffs. Intel’s stock rose by nearly 5% in pre-market trading in reaction to this initiative.

Woodstock’s downgrade of Advanced Micro Devices (AMD) caused the stock to dip over 1% pre-market. ARK Investment reduced its stake in AMD, highlighting the need for the company to enhance its technological capabilities to compete with rivals like Intel and NVIDIA. Eli Lilly and Co, on the other hand, experienced a 2% pre-market increase following FDA approval for its new drug Inluriyo. This medication showed promising results in reducing the risk of cancer progression in advanced breast cancer patients.

Li Auto introduced its new i6 SUV, leading to a rise of over 4% in its stock before the market opened. Kuke Music faced a significant drop pre-market after acquiring a controlling stake in Naxos Music Group. Crinetics’ stock surged 10% in pre-market trading after receiving FDA approval for its drug targeting growth hormone disorders. Boeing’s shares also climbed over 3% pre-market, with the FAA easing restrictions on aircraft deliveries.

In global macro news, the Trump administration is considering a policy that would require domestic semiconductor production to match import volumes or face tariffs. This proposal could impact tech companies like Apple and Dell, while benefiting manufacturers increasing US production. Additionally, discussions within the Federal Reserve suggest potential changes to the fixed 2% inflation target as new board compositions and Chair Powell’s upcoming term expiration may influence future decisions. Data indicating a persistent inflation rate above 2% raises questions about the Fed’s long-term strategy.