US PREMARKET ACTIONS: September 26, 2025
**Futures Indices**
Dow Futures: +0.4%
S&P 500 Futures: +0.4%
Nasdaq 100 Futures: +0.3%
US 10-year yield: 4.18%
**Market Environment**
US markets are rebounding this Friday following the release of the Fed’s preferred inflation indicator, the Core PCE, which came in line with expectations (+0.2% monthly, +2.9% yearly). This figure reassures investors about the pace of disinflation.
Yesterday, Wall Street closed lower after solid economic data (decline in jobless claims, upward revision of GDP), which reduced expectations for quick rate cuts.
“Markets suffered again yesterday, with a wave of broad-based selling that saw the S&P 500 post a third consecutive decline. The main catalyst was a series of strong US economic numbers, prompting investors to scale back their expectations for rapid Fed rate cuts.” – Henry Allen, Deutsche Bank
This data strengthens the image of a more resilient US economy than expected, reducing the likelihood of a more accommodative monetary policy in the short term.
Watch today: the Consumer Sentiment Index (University of Michigan). Consensus expects stability at 55.4, with inflation expectations at 4.8%.
Finally, Donald Trump announced new tariff measures effective October 1, including a 100% tariff on branded medicines unless manufacturers invest in plants in the US.
“The 100% tariff on pharmaceuticals targets only branded drugs. Building a plant can offer an exemption. Many companies in the sector already have US facilities, so it may be relatively easy to expand these symbolically to avoid the tariffs.” – Paul Donovan, UBS
**Stocks to Watch**
GUTS +25.74%
Fractyl Health soars after announcing the completion of a $60M subscribed fundraising.
CJET +24.98%
Chijet Motor surges after announcing a $20M capital raise.
NAK +8.49%
Northern Dynasty receives a new $12M tranche through royalty financing.
CNXC -17.26%
Concentrix drops sharply: ongoing concerns over margins and potential effects of new taxes.
LASE -10.46%
Laser Photonics falls after the announcement of a $4M private placement.
LEXX -24.84%
Lexaria Bioscience tumbles after a direct $4M fundraising — despite abandoning another stock sale deal.
SNGX -28.40%
Soligenix plummets after the announcement of a $7.5M public placement.
RH -3.25%
The furniture sector (including RH) hit by concerns over new US trade tariffs.
**Recommendation Changes**
Upgrades
Kenvue Inc. ($KVUE) → Rothschild & Co Redburn upgrades to buy (from neutral) but reduces price target to $22 (from $22.50).
Applovin Corporation ($APP) → Piper Sandler maintains overweight and raises price target from $500 to $740.
Arista Networks Inc ($ANET) → CICC maintains outperform and raises target from $131 to $164.
Kratos Defense & Security ($KTOS) → Baird keeps outperform, target raised from $70 to $87.
Pure Storage, Inc. ($PSTG) → Wells Fargo remains overweight, target raised from $80 to $100.
Neutral
American Airlines ($AAL) → BNP Paribas Exane remains neutral, target raised from $9 to $11.
Synopsys, Inc. ($SNPS) → Redburn stays at buy, but reduces target from $700 to $550.
Downgrades
Carmax, Inc. ($KMX) → Oppenheimer downgrades to market perform (vs outperform).
Warner Bros. Discovery ($WBD) → KeyBanc moves to sector weight (vs overweight).
Have a good session everyone!