Futures edged higher on Friday as investors absorbed the latest round of positive inflation data. The Federal Reserve’s preferred inflation gauge indicated further signs of cooling inflation.
The S&P 500 gained 0.8% during the morning session, while the Dow Jones Industrial Average added 0.6%. The tech-heavy Nasdaq Composite index leads the charge, surging by more than 1%.
According to the inflation gauge, prices rose by 3.8% in May compared to the previous year, down from a year-over-year rise of 4.4% in April. This data comes after an upward revision of first-quarter GDP in the U.S. thereby beating Wall Street expectations.
Core prices 4.6% in May from the previous year, the inflation measure indicated, down from the previous increase of 4.7% in April. This is the fifth straight month that the core measure was either 4.6% or 4.7%.
Overall, such results indicate that the Federal Reserve’s tight monetary policy, consisting of 10 rate hikes over the past 15 months, has not been entirely effective at limiting price rises.