Stock futures edged higher Thursday evening after better-than-expected inflation data drove a broad market rally.
Futures linked to the Dow Jones Industrial Average rose 43 points, or 0.13%. S&P 500 futures and Nasdaq 100 futures edged higher.
In regular trading, the major indexes posted their biggest one-day gains since 2020. The Dow Jones rose more than 1,200 points. The S&P rose 5.5% and the Nasdaq Composite rose about 7.4%.
All indices are heading for a winning week. The Dow gained 4% for the week, while the S&P and Nasdaq gained 4.9% and 6.1%, respectively. The three averages are also expected to be a positive month.
The U.S. Bureau of Labor Statistics reported that consumer prices rose less than expected in October, raising hopes that inflation may be cooling. Treasury yields tumbled after the data, while tech stocks surged.
“The whole market was ecstatic after CPI moved lower this morning…but today’s CPI report, while showing that inflation is headed in the right direction, does not suggest that inflation has been eradicated from the wider economy,” Quincy Kerr said. said Rosby, chief global strategist at LPL Financial. “That doesn’t mean the Fed’s job of restoring price stability is complete.”
In October, the CPI rose 0.4% month-on-month and 7.7% year-on-year. The Dow is estimated to have gained 0.6% and 7.9%, respectively.
Investors are looking forward to preliminary data on consumer sentiment from the University of Michigan at 10:00 am ET.