U.S. stock futures rose as the March consumer prices report showed inflation excluding volatile food and energy costs was slightly less than expected. A drop in rates helped boost stocks.
Futures on the Dow Jones Industrial Average gained 237 points or 0.69% following the report. S&P 500 futures ticked upward by 1.18%. Nasdaq-100 futures climbed 2.01%.
Mega-cap tech stocks that have been hit hard this year on higher rate fears rebounded.
Apple, Tesla, Amazon, Microsoft, Nvidia, Alphabet and Meta Platforms climbed between 1% and 4%.
Consumer prices for March increased 1.2% month-to-month and 8.5% annually, the Labor Department said on Tuesday. But traders were focusing on the core reading, which excludes food and energy prices. Core CPI in March increased 0.3%, below the consensus economist estimate from Dow Jones of 0.5%. Core prices on an annual basis were up 6.5%.
The 10-year Treasury yield retreated from a three-year high following the report as traders were betting the core reading could mean inflation is showing signs of peaking.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments