U.S. Stock futures rose on Friday with the S&P 500 headed for its fourth positive week in a row on the hope that inflation is peaking.
Futures tied to the Dow Jones added 150 points, or about 0.4%, while S&P 500 futures gained 0.5% and Nasdaq 100 futures rose 0.6%.
The S&P 500 is up 1.5% on the week, helped most by a rally earlier in the week after a lighter-than-expected consumer prices report. This will be the S&P 500′s longest weekly winning streak since November 2021. A report later in the week on wholesale prices further validated the speculation that the inflation trend could be turning lower, which could lead the Federal Reserve to eventually slow down its aggressive tightening campaign.
The Dow is up 1.6% for the week, while the Nasdaq Composite is 1% higher. For the Nasdaq, it is also the fourth positive week in a row.
“Based on what the jobs number showed us this week, and what the CPI and the PPI in particular showed us this week, this may overall work pretty good for earnings. ... The fundamentals are indeed getting better, even as many challenges remain in the landscape,” John Stoltzfus from Oppenheimer said on “Squawk on the Street.”
This week’s moves have extended a market rally off its mid-June lows. The S&P 500 is up 14.7% since the lows, while the Dow has gained 11.5% and the Nasdaq Composite is up 20.0%.
On the economic front, import prices showed a larger than expected decline in July, adding another positive data point for inflation. Consumer sentiment data are due out later Friday.