Stocks rose on Wednesday as US inflation continued to cool, weakening the case for further rate hikes by the Federal Reserve.
S&P 500 (^GSPC) futures were up about 0.7%, while Dow Jones Industrial Average (^DJI) futures were up about 0.6%. Technology-focused Nasdaq 100 futures rose nearly 0.9%. All three major benchmarks closed with gains on Tuesday.
The Consumer Price Index (CPI) report slowed to its lowest level since March 2021, fueling hopes that Fed officials may reconsider their stance that more rate hikes are needed to ease price pressures.
But the rate is still above the central bank’s 2 percent target, and according to the CME FedWatch tool, traders still see a 92 percent chance of a rate hike at the July Fed meeting.
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Stock futures rise as CPI inflation data emerges
The three major US stock indicators rose in premarket trading on Wednesday as markets braced for the release of closely watched consumer inflation data ahead of the market bell.
Futures on the S&P 500 (^GSPC) were up 0.17%, while futures on the Dow Jones Industrial Average (^DJI) were up 0.11%, or nearly 40 points. Contracts on the tech-heavy Nasdaq 100 rose 0.18%.
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