U.S. stock futures advanced Thursday ahead of the week’s big event, the release of inflation data.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
+0.42%
rose 127 points, or 0.4%, to 29388. -
Futures on the S&P 500
ES00,
+0.42%
gained 14.75 points, or 0.4%, to 3603. -
Futures on the Nasdaq 100
NQ00,
+0.19%
increased 19.5 points, or 0.2%, to 10860.
On Wednesday, the Dow Jones Industrial Average
DJIA,
fell 28 points, or 0.1%, to 29211, the S&P 500
SPX,
declined 12 points, or 0.33%, to 3577, and the Nasdaq Composite
COMP,
dropped 9 points, or 0.09%, to 10417.
The S&P 500 has dropped 25% this year as investors react to an aggressive-rate hike campaign from the Federal Reserve.
What’s driving markets
Consumer price data is set for release at 8:30 a.m. Eastern, with expectations of a 0.3% monthly rise that will reduce the year-over-year inflation rate to 8.1% from 8.3%. Core CPI is seen posting a 0.4% monthly gain.
“This promises to be quite a momentous occasion, as these numbers may hold the key for the performance of the U.S. dollar, and also provide direction for the wider financial markets,” said Ricardo Evangelista, senior analyst at ActivTrades.
Six of the eight CPI readings this year have topped expectations, noted Michael Brown, senior market analyst at Caxton.
Heading into the data, fed funds are pricing in an 83% probability of a 75 basis point rate hike at the next Federal Open Market Committee data, according to the CME FedWatch tool.
The yield on the 10-year Treasury
TMUBMUSD10Y,
was steady at 3.91%.
