New Zealand shares were flat on Friday while Wall Street soared to record highs as the latest inflation data reaffirmed the odds of an upcoming September Fed rate cut.
The S&P/NZX 50 Index was little changed to close at 13,227.90.
The Dow Jones index closed at a new record of 46,108 points, rising 1.4% while the benchmark S&P 500 also ended at a record of 6,587.47 points, gaining 0.9%.
The consumer price index rose 0.4% in August, topping the 0.3% rise consensus and accelerating from a 0.2% increase in July.
"Today's economic numbers confirmed my 'running it hot thesis,' as inflation proved to be sticky, yet it did not spin out of control. Meanwhile, jobless claims rose to a four-year-high, which tells the market the Fed may be 'forced' to cut rates more aggressive. As inflation is not spinning out of control, Powell may use the opportunity," Seeking Alpha analyst Leo Nelissen said, as quoted in the article.
In domestic news, the Reserve Bank of New Zealand's focus in 2026 will be on improving its regulatory framework, making sure it is "fit for a modern financial system," with regulatory tools and powers, as well as an internationally comparable approach, the central bank's Governor Christian Hawkesby said in a speech.
Also, New Zealand's manufacturing sector retreated into contraction in August as it struggles to gain momentum, with rising costs and global uncertainty hurting margins and dampening confidence, BusinessNZ said.
Further, New Zealand's 0.7% lift in spending in retail stores in August is a firmer than expected outcome and bodes well for the September quarter gross domestic product, said Westpac in a report.
In corporate news, Tower (ASX:TWR, NZE:TWR) lifted its fiscal year 2025 underlying net profit after tax (NPAT) guidance to a range of NZ$100 million to NZ$110 million, up from NZ$70 million to NZ$80 million previously, driven by lower large event costs and growth in customer numbers.
Gentrack Group (ASX:GTK, NZE:GTK) received notice that UBS Group and its related entities ceased to be the company's substantial shareholder on Sept. 9.