Equity futures were slightly higher on Thursday night after better-than-expected inflation data fueled a broad market rally.
Dow Jones Industrial Average futures added 43 points, or 0.13%. S&P 500 and Nasdaq 100 futures rose slightly.
In regular trading, major averages posted their biggest one-day rallies since 2020. The Dow jumped more than 1,200 points. The S&P rose 5.5% and the Nasdaq Composite jumped around 7.4%.
All indices are at the rate of a winning week. The Dow Jones is up 4% on a weekly basis, while the S&P and Nasdaq are poised to rise 4.9% and 6.1%, respectively. All three averages are also on track for a positive month.
The rally came after the Bureau of Labor Statistics reported weaker-than-expected consumer price inflation for October, giving investors hope that inflation may ease. US Treasury yields plunged after the data was released, while tech stocks soared.
“Markets across the board are euphoric after the CPI cools this morning… But today’s CPI report, while indicating that inflation is moving in the right direction, does not suggest that inflation has been squeezed out of the broader economy,” said Quincy Krosby. , Chief Global Strategist for LPL Financial. “And that doesn’t mean the Fed’s job of restoring price stability is done.”
The October CPI rose 0.4% for the month and 7.7% from a year ago. The respective Dow Jones estimates pointed to gains of 0.6% and 7.9%.
Investors are eagerly awaiting preliminary consumer sentiment data from the University of Michigan, due out at 10 a.m. ET.