Stock futures were slightly higher Thursday night after better-than-feared inflation data fueled a broad market rally.
Futures linked to the Dow Jones Industrial Average gained 43 points, or 0.13%. S&P 500 futures and Nasdaq 100 futures edged higher.
In regular trading, the major averages posted their biggest one-day rallies since 2020. The Dow is up more than 1,200 points. The S&P was up 5.5% and the Nasdaq Composite was up about 7.4%.
All indices are on track for a successful week. The Dow is up 4% on the weekly basis, while the S&P and Nasdaq are up 4.9% and 6.1%, respectively. The three averages are also on course for a positive month.
The rally came after the Bureau of Labor Statistics reported a lower-than-expected increase in consumer prices for the month of October, giving investors hope that inflation is cooling. US Treasury yields plummeted after the data was released, while tech stocks soared.
“Markets across the board are euphoric after this morning’s cooler CPI… But while today’s CPI report suggests that inflation is moving in the right direction, it doesn’t suggest that inflation is coming out of the broader economy eradicated,” said Quincy Krosby, chief global strategist for LPL Financial. “And it does not suggest that the Fed’s task of restoring price stability is complete.”
October CPI rose 0.4% for the month and 7.7% year-on-year. Corresponding estimates from Dow Jones were for gains of 0.6% and 7.9%.
Investors look forward to preliminary consumer sentiment data from the University of Michigan, which is due to be released at 10:00 a.m. ET.