Inflation reading, Carnival reports, consumer sentiment: 3 things to watch

Investing.com -- Stocks rose on Thursday but the indexes are still headed for a down month as September draws to a close.

The third quarter is also set to end on a down note Friday. Investor optimism for tech stocks earlier this year was fueled by the excitement around artificial intelligence, but more recently the stocks have been weighed by concerns that interest rates would remain higher for longer than expected.

The Federal Reserve has signaled another rate hike ahead, and half as many cuts next year as previously forecasted, as it continues its battle with inflation.

Economists have been lowering their outlooks for economic growth in the last quarter of this year, though a robust consumer heading into the retail industry's key holiday shopping season could help keep numbers up.

Investors are turning their attention to economic data coming up, including the September jobs report due out next week.

One potential stumbling block: A looming federal government shutdown, which could happen this weekend if Congress fails to pass a temporary funding extension, could delay the release of some of that data.

Here are three things that could affect markets tomorrow:

1. Inflation reading

The personal consumption expenditures index is expected out at 8:30 ET (12:30 GMT). Analysts expect the top line number to rise 3.5% for the year and 0.5% for the month of August. Core PCE, excluding fuel and food prices, is expected to rise 3.9% and 0.2%, respectively.

2. Carnival reports

Cruise ship operator Carnival Corporation (NYSE:CCL) is expected to report earnings per share of 75 cents on revenue of $6.7 billion.

3. Consumer sentiment

The University of Michigan's consumer sentiment reading for September is out at 10:00 ET. Expectations are for a reading of 67.7.