US futures jump after softer-than-expected July inflation data
Wall Street was set to open sharply higher on Wednesday after data showed a slower-than-expected rise in inflation last month, reducing bets on super-sized rate hike in September.
U.S. annual consumer prices slowed to 8.5% in July.
Economists polled by Reuters expected the Consumer Price Index to show year-on-year headline inflation of 8.7%, far above the Federal Reserve’s target of 2%, but lower than last month’s 9.1%.
Core inflation remained unchanged month-on-month at 5.9%, while economists were expecting a rise to 6.1%.
The market is now pricing in 33.5% chance of a 75 basis point increase in fund rates at the Fed’s next meeting in September, compared with 67.5% before the data.
At 8:41 a.m. ET, Dow e-minis were up 424 points, or 1.3%, S&P 500 e-minis were up 71.5 points, or 1.73%, and Nasdaq 100 e-minis were up 307.25 points, or 2.36%.
After a rough start to the year, the benchmark S&P 500 is up nearly 13% from its mid-June low, largely on expectations the Fed will be less hawkish than anticipated in its efforts to provide a soft landing for the economy.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Comments are closed.