US CPI came softer than expected. Dow rise on the data figures. After softer-than-expected U.S. inflation statistics on Wednesday, futures for US stocks saw a significant increase.
US CPI data less than expected
Wednesday’s rises in U.S. stock futures were substantial, building on those from the day before. When lower-than-expected U.S. inflation statistics raised expectations the Fed would soon stop raising interest rates.
The Dow contract for futures was higher 185 points, or 0.5%, at 08:35 ET (12:35 GMT). While the S&P 500 were up 32 pts, or 0.7 percent. While the Nasdaq 100 contracts were up 147 pts, or 1 percent.
US June CPI is less than anticipated.
The overall CPI increased by 3.0% during June, less than the 3.1% projected. And after a monthly rise of 0.2 percent. This was the weakest yearly increase before March 2021. The yearly core rate decreased for a third continuous month, at 5.3% – 4.8 percent.
Source: US Bureau of Labor Statistics
Since inflation continues to hover over the Fed’s med-term objective. Investors has mostly assumed that the Fed would raise rates in July. However, it is still unclear whether many further increases remain in the Fed’s back pocket.
Wall Street is in a positive mood.
The three major benchmark indexes ended up substantially on Tuesday as a result of remarks by Fed‘s policy officials. Hinting the current rate-hiking process might be quickly coming to a close end. Wednesday’s anticipated increases will keep the good begin the week that follows going.
The Nasdaq Composite increased 0.6 percent, whereas the wide-ranging S&P 500 finished over 300 pts above, or by 0.9%. While the Dow Jones rose over 300 points, or 0.9 percent.
Wednesday will also feature remarks from additional members of the Fed. Notably Neel Kashkari of the Minneapolis Fed & Loretta Mester of the Cleveland Fed.
