Devon Funds Morning Note

US stocks rose 1% on Friday, with SPX, NDX, and DJI gaining. Oracle (ORCL) earnings initially boosted sentiment, but the stock closed lower. Core CPI rose 0.3% M/M, above forecasts, increasing Fed rate hike expectations to 86%. Saudi Arabia shut its East-West pipeline after attacks, with repairs expected to take over a month. Iran postponed a meeting on the Strait of Hormuz. NVIDIA (NVDA) plans to invest up to $10bln in Anthropic's IPO. Johnson & Johnson (JNJ) is in talks to sell its hip-and-kne

US August CPI data showed a 0.4% monthly and 3.4% yearly increase, with energy prices driving the rise. Core inflation cooled, leaving Fed rate expectations unchanged. Bitcoin (BTC) and Ether (ETH) saw modest gains, with BTC nearing $79,000 before retreating to $77,800 and ETH moving above $2,500. Analysts noted that institutional allocation is driving Bitcoin's advance.

U.S. stock indices fell on Friday, with the S&P 500 down 2.64%, Nasdaq 100 down 4.77%, and Dow Jones down 1.35%, due to strong jobs data raising rate hike bets. Meta dropped on reports of a potential stock sale. TSLA fell 5% after postponing its Roadster demo. GME's CEO is pursuing eBay. META may raise equity for AI. BA will start 737 Max production. MSTR dropped with Bitcoin. GOOGL secured a cloud deal with SpaceX.

Wall Street firms including JPMorgan, Goldman Sachs, and Morgan Stanley estimate US CPI inflation at 3.4%. Bitcoin price fluctuates ahead of the data release, with traders awaiting Fed rate hike decisions. Fed rate hike odds have increased following recent PPI data, but a pause is still possible. Bitcoin's price is near $77,210, with trading volume down over 24 hours.

A surge in cellular phone service prices contributed to a higher-than-expected US inflation rate, likely influencing the Federal Reserve's decision to raise interest rates. According to the Bureau of Labor Statistics, the consumer price index excluding food and energy rose 0.3% in August, driven partly by a 5.9% increase in wireless telephone services. Economists attribute this to price changes by major carriers like AT&T and T-Mobile.

Canada's Bank of Montreal (BMO) plans to invest $70B over 10 years in critical sectors like energy, infrastructure, and AI. Ontario Teachers’ Pension Plan aims to add $10B in Canada by 2027. Sun Life Financial will deploy $5B in infrastructure. RBC launched a $1.4B tech fund. These commitments coincide with Canada's Investment Summit led by PM Mark Carney.