Dow Jones futures rise as cooling inflation reduces Fed rate hike bets
Dow Jones futures gain 0.08% to trade around 53,910 during European hours on Thursday. Meanwhile, S&P 500 futures rise by 0.09% to trade around 7,780 and Nasdaq 100 futures advance 0.06%, trading near 29,870.
US stock futures experienced a rise on Thursday as cooling inflation metrics reduced expectations of Federal Reserve (Fed) rate hikes. Dow Jones futures increased by 0.08% to trade near 53,910, S&P 500 futures rose by 0.09% to around 7,780, and Nasdaq 100 futures advanced 0.06%, trading close to 29,870. July's headline CPI declined slightly to 3.4% year-over-year, while core CPI cooled to 2.5%, aligning with market forecasts.
Investors are now focusing on the upcoming US Producer Price Index (PPI) data for July, scheduled later in the day. This reduction in inflation has strengthened market confidence in a more accommodative Fed stance, with the CME FedWatch tool indicating the probability of a September rate hike falling to approximately 36% from 48% the previous day.
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