Futures in New York rose on Thursday, remaining on course to extend their rally as investors observed the latest round of inflation data. Headline consumer inflation dropped to a two-year low, thereby indicating that inflation is cooling down at large.
S&P 500 futures were up 0.3%, while those on the Dow Jones Industrial Average gained 0.2%. Nasdaq 100 futures led Thursday’s gains, rising 0.6%.
According to the CME FedWatch Tool, the majority of traders a 90% certain that the Federal Reserve will raise interest rates in July. Still, the inflation cooldown has given investors hope that the central bank may consider dialing back its rate-hiking campaign in the near future.
Investors now turn their focus to the Producer Price Index (PPI), due to be released later on Thursday. This report is expected to provide further insight into the extent to which price pressures are actually being reduced.
The stock rally was also bolstered by the rise in PepsiCo and Delta shares, with both companies announcing stellar second-quarter results. Banks such as JPMorgan and Citi are due to release their earnings on Friday.