US stock futures jump after report shows inflation cooling
U.S. stock indexes futures surged 2% or more, indicating a big market move at the opening
Wall Street looks set to jump Thursday after a government report showed inflation eased by even more than economists expected last month. Futures for U.S. stock indexes surged 2% or more, indicating a big increase once trading begins, while Treasury yields fell dramatically as bond markets relaxed. Even bitcoin rose, clawing back some of its steep plunge from prior days caused the crypto industry's latest crisis of confidence. A slowdown in inflation could mean the Federal Reserve won't have to be so aggressive about raising interest rates. Such hikes have been the main reason for Wall Street's troubles this year and are threatening a recession.
U.S. futures are modestly higher Thursday ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes as it tries to squelch four-decade high inflation.
Futures for the benchmark S&P 500 rose 0.2% and futures for the Dow Jones industrials inched up 0.1%.
Forecasters expect U.S. government data Thursday to show inflation eased in September but stayed near a 40-year high. That might reinforce arguments that rates have to stay elevated for an extended period to slow economic activity and extinguish inflation.
