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Stock futures climb ahead of Big Tech earnings, widely expected Fed rate cut: Live updates
Stock futures rose Sunday evening as investors looked ahead to a widely expected interest rate cut by the Federal Reserve and a raft of Big Tech earnings reports.
S&P 500 futures and Nasdaq 100 futures were up roughly 0.7% and 0.9%, respectively. Futures tied to the Dow Jones Industrial Average added 290 points, or 0.6%.
Investors expect the Fed to slash rates at its meeting on Oct. 29, particularly after the Bureau of Labor Statistics released cooler-than-expected inflation data last week. Slightly more than 96% of investors expect a deep rate cut to 375 to 400 basis points, while about 3% are betting on a reduction to 400 to 425 basis points, according to the CME FedWatch Tool.
'Premature to signal the all-clear': Markets cheered the CPI print — but Main Street isn’t feeling the relief
Stocks rallied on Friday after September’s inflation report came in slightly better than expected. But on Main Street, the relief is harder to find.
The headline Consumer Price Index rose 3% from a year earlier, a tenth of a percentage point below estimates, giving the Fed some breathing room to press ahead with another rate cut next week. Core inflation eased to 3% year over year from 3.1% in August, the kind of progress policymakers and investors have been waiting for as signs emerge that price pressures in stubborn categories like housing and core services are finally starting to cool.
Read more: How jobs, inflation, and the Fed are all related
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Stocks rally and Dow closes above 47,000 for first time after cooler-than-expected inflation report
Better-than-expected inflation data Friday morning sparked an end-of-week rally in stocks, sending the Dow, S&P 500 and tech-heavy Nasdaq Composite soaring to fresh record highs.
The Dow gained 473 points, or 1.01%, and closed at 47,207.12. The blue-chip index closed above 47,000 for the first time ever.
The broader S&P 500 climbed 0.79%. The Nasdaq gained 1.15%. Wall Streetâs fear gauge, the VIX, sank 5%.
Wall Street sentiment got a boost Friday after Consumer Price Index data for September showed annual inflation heated up in September but less than expected.
That boosted expectations that the Federal Reserve will cut interest rates at its upcoming policy meetings next week and in December. Fed rate cuts can lower savings and borrowing rates, encouraging spending and investing and boosting business activity, creating a sustained tailwind for the stock market.