Stock futures rose on Thursday after a reading on consumer prices in October raised hopes that inflation had peaked.
Futures linked to the Dow Jones industrial average rose 844 points, or 2.6%. S&P 500 futures rose 3%, while Nasdaq 100 futures rose more than 3.7%.
The Consumer Price Index, the broad-based cost of goods and services, Up just 0.4% 7.7% for the month and one year ago. This was its smallest annual increase since January. According to Dow Jones, economists expect increases between 0.6% and 7.9%. Excluding volatile food and energy costs, so-called core CPI rose 0.3% month-on-month and 6.3% year-on-year, less than expected.
“It certainly shows how important, concerned and willing the markets are to run on CPI if you get any help here,” NatWest’s John Briggs said. “It only brings up the idea of peak inflation, a peak Fed… the Fed will slow and peak rather than aggressively raise by 75 basis points at a time.”
Treasury yields The CBI fell after the report, the 10-year Treasury yield fell more than 18 basis points to 3.946%, falling below the key 4% level. The 2-year Treasury yield fell over 23 basis points to 4.395%.
Tech stocks, which have been hit hard this year by rising inflation and rates, gained in pre-market trade. Nvidia and Tesla rose more than 5%. Sellers rose 4%. Apple gained 3%.
Semiconductor stocks gained as shares of Lamm Research, KLA and Applied Materials rose more than 5% each.
This is a A day of losses The Dow fell 646.89 points, or 1.95%. The Nasdaq Composite and the S&P 500 were down nearly 2.5% and about 2.1%, respectively.
The decline comes amid uncertainty stemming from the US midterm elections. The market had hoped Republicans would take overwhelming control of the House and Senate on Tuesday — a scenario that would set the stage for Washington, DC, but instead, key Senate races in Arizona, Georgia and Nevada are hotly contested. Indeed, the Senate race between Democrat incumbent Raphael Warnock and Herschel Walker Go for the December run.