Friday's inflation report gave the market plenty to chew on. The August Consumer Price Index (CPI), released at 8:30 a.m., showed headline inflation running at 3.4% year over year, in line with expectations, and the market responded by pushing several names sharply higher. Month over month, headline CPI rose 0.4%, also matching the consensus forecast. But before reading too much into a single session, it is worth keeping the economic calendar in mind. The Federal Reserve announces its next interest rate decision on Wednesday, Sept. 16, just five days after the CPI release, and that event could set the tone for the weeks ahead. It could easily confirm Friday's strength or wipe it away.
That is exactly why the stocks that broke out on Friday and displayed notable strength are worth watching so closely right now. The real signal and takeaway is not just that they moved, but whether they can hold and build on that strength through the Fed decision and beyond. A breakout that survives a major catalyst is far more meaningful than one that fades. With that in mind, here are five names that showed genuine signs of life after the CPI print, along with an honest look at where each stands.
Dell Technologies: The Breakout Star
No stock on this list moved like Dell Technologies (NYSE: DELL). Shares surged nearly 10% on Friday to a fresh all-time high, capping what has been a truly staggering year.
Year-to-date (YTD), the stock is up nearly 325%. The move has been fueled by the AI server, hardware, and infrastructure boom, with its recent earnings release noting the company booked more AI server orders in three months than it recorded in total revenue, a stunning illustration of the demand flowing its way.
Dell's financial health has held in a strong position for six months, and it carries a Moderate Buy consensus, along with projected earnings growth of almost 13%. One thing to watch is that after such an enormous run, the stock now trades essentially at its average analyst price target, and insiders have been selling consistently this year. Friday's breakout was powerful, but with the stock at record highs and priced for a lot of good news, its behavior through the Fed decision will reveal whether buyers are still willing to chase it higher and whether or not DELL remains a leader in this market into year-end.
Hewlett Packard Enterprise: Riding the AI Networking Wave
Hewlett Packard Enterprise (NYSE: HPE) was every bit Dell's equal on Friday, jumping more than 10% as well, in touching distance of its 52-week high near $64.25.
The enterprise technology company has quietly been one of the year's biggest winners, up over 130% YTD, and its recent earnings explain why. Networking Segment revenue jumped 75% last quarter, and the company has a $7.6 billion AI backlog, underscoring how much AI infrastructure demand is flowing through its business.
Of all the names here, HPE arguably has the most compelling combination of momentum and value. It scores in the 99th percentile of MarketBeat's MarketRank, one of the highest scores in the entire technology sector. Unlike Dell, it still offers roughly 25% upside to its average analyst price target. With a Moderate Buy consensus and projected earnings growth near 27%, HPE is a name where Friday's strength may have room to run, provided the broader tape cooperates.
From a technical perspective, Friday’s high and the stock’s 52-week high will be the all-important area to watch going forward. After Friday’s move, the stock will need to hold near that level to avoid a failed breakout and a retest of this resistance zone.
Qualcomm: A Data Center Bet Gaining Traction
Qualcomm (NASDAQ: QCOM) climbed nearly 3% on Friday, a more measured move than the hardware names but a notable one given the stock's recent struggles. Friday’s move was notable, however, as the stock attempted to take out the week’s high following its recent reclaim of its 200-day simple moving average (SMA).
The stock’s main catalyst has been its push into data centers. The company recently struck a multi-year deal to supply Amazon's (NASDAQ: AMZN) Amazon Web Services (AWS) with custom data center chips, an agreement tied to up to $60 billion in potential purchases through 2036, and the market has taken it as evidence that Qualcomm's diversification beyond smartphones is becoming real.
Despite the excitement and its recent appearance on the most-upgraded stocks list, Qualcomm carries only a Hold consensus rating, and its financial health, according to TradeSmith, sits in the Red Zone.
The stock is up about 5% on the year, a laggard compared to the others here as well as the market benchmark.
Friday's move was encouraging, and the AWS deal is a genuine catalyst, but Qualcomm has more to prove than most. A push higher through the Fed meeting would help confirm that the turnaround has legs. From a technical standpoint, the QCOM bulls will want to see last week’s range hold up, with the 200-day SMA serving as the near-term line in the sand.
Apple: Quiet Strength Near the Highs
Apple (NASDAQ: AAPL) added nearly 2% on Friday and was up an impressive 9% on the month to begin the new trading week. It closed Friday roughly 3% off its 52-week high, extending a steady recovery that has carried the stock up more than 22% this year.
The move came after its latest product event, where the company unveiled a foldable iPhone and new Pro models. The initial reaction to the event was muted, but the stock firmed up into the close and followed through on Friday as investors warmed to the new lineup and its potential to drive an upgrade cycle.
Apple's financial health is in the Green Zone, and it holds a Moderate Buy consensus. The potential caveat is valuation and analyst positioning: the stock trades at nearly 38 times earnings and sits right at its average price target, leaving little obvious upside on Wall Street’s numbers.
Apple's strength has been reliable this year, though, and its balance sheet is unmatched. But at these levels it needs the new product cycle to deliver. Whether it can push to new highs through the Fed decision, or at the very least maintain its relative strength positioning, is the near-term test.
iShares Ethereum Trust: A Notable Breakout That Closed Weak
The iShares Ethereum Trust (NASDAQ: ETHA) is the most nuanced name on this list, and it deserves a candid assessment. On Friday, the fund, which predominantly invests in long Ethereum, broke out above the closely watched $19 level, trading as high as $20.12 intraday on enormous volume. That breakout was genuinely notable, a sign that appetite for risk assets, including Bitcoin and Ethereum, was stirring after the inflation data.
But the close is where the caution comes in. Despite clearing $19, ETHA faded badly into the end of the session, closing just slightly above the breakout spot of $19, near the low of its daily range. A breakout that cannot hold its gains into the close is a warning sign, but not a failed breakout confirmation; still, it leaves the move looking shaky.
The fund is also still down almost 15% on the year. For market participants, the $19 level is now the one to watch: a decisive hold above it, particularly through the Fed decision, would strengthen the case, while a slip back below would suggest Friday's breakout was a failed move higher and a potential bull trap.
The Real Test Is Wednesday
Friday offered a useful snapshot of where the market's appetite was flowing, and the answer was clear: AI infrastructure names led the way, with Dell and HPE breaking out powerfully, Qualcomm and Apple showing steadier strength, and even Ethereum stirring, albeit unconvincingly. But a single session driven by an inflation print is just that, a single session. The Federal Reserve's decision on Wednesday, Sept. 16, looms as the far more important catalyst.
What matters now is not that these five moved on Friday, but whether they can defend and build on that strength once the Fed has its say. Breakouts that survive a test like that are the ones especially worth trusting and watching closely. For now, these are five names to watch, not five conclusions to draw.
The article "5 Names That Showed Signs of Life After Friday's CPI Report" first appeared on MarketBeat.
