Investing.com — U.S. stock index futures rose on Thursday, extending gains after signs of a slight decline in consumer inflation pushed Wall Street to record highs on hopes for an interest rate cut.
At 06:30 EST (10:30 GMT), it rose 5 points or 0.1%, rose 3 points or 0.1%, and rose 20 points or 0.1%.
Major indexes rose strongly on Wednesday after slightly weaker-than-expected CPI data showed traders becoming more convinced that the Federal Reserve will start cutting interest rates in September.
The index rose 1.2%, 1.4%, and 0.9%, with the three indices closing at record levels.
The Consumer Price Index (CPI) reinforces interest rate cut bets for September
Data on Wednesday showed that inflation grew at a cooler monthly rate than expected in April, while the rate, which excludes volatile food and energy prices, fell to 3.6% year-on-year from 3.8% in March.
Although inflation eased in April, it remained well above the Federal Reserve's 2% annual target. It also followed a stronger-than-expected print on Tuesday.
However, the probability of a 25 basis point rate cut in September rose to 53.8%, according to the Fed, compared to 49.0% last week.
The weak data for April, released on Wednesday, also raised hopes that inflation will cool in the coming months.
There is more data to consider on Thursday, including the widely watched weekly data and , as well as comments from a number of Fed spokespeople.
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Chubb hits record high
In the corporate sector, large, low-cost chain Walmart (NYSE:) is scheduled to report its latest quarterly results on Thursday.
Elsewhere, Chubb (NYSE:) stock rose nearly 10% to a record high in pre-market trading, after Warren Buffett's Berkshire Hathaway (NYSE:) revealed it had acquired a $6.72 billion stake in the insurance company.
Shares of Cisco Systems (NASDAQ:) rose nearly 5% after the communications equipment maker reported stronger-than-expected quarterly earnings.
Meta Platforms (NASDAQ:) stock fell 0.5% after the European Commission launched an investigation into Facebook's parent company over alleged violations of the bloc's strict online content law regarding child safety risks.
The two-day rally in so-called meme stocks ran out on Wednesday, with GameStop (NYSE:) and AMC Entertainment (NYSE:) both falling about 20% during the session. Both companies saw extended losses in pre-market trading, and both saw double-digit losses.
Oil regains early gains
Crude oil prices fell on Thursday, giving up previous gains following the release of the US consumer inflation report and a larger-than-expected decline in US inventories.
By 06:30 EST, US crude futures were trading down 0.4% at $78.32 per barrel, while the Brent contract was down 0.4% at $82.42 per barrel.
Inflation data has strengthened the possibility of lower interest rates, which could lead to a rise in global economic activity in the future, and thus demand for oil.
Official data on Wednesday also showed that the United States contracted by a larger-than-expected amount of 2.5 million barrels in the week ending May 10, raising hopes for improved demand in the world's largest fuel consumer, especially with the approach of the heavy summer travel season.
(Ambar and Eric contributed to writing this article.)
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