The US stock market was poised for gains on Thursday after a key report on consumer inflation showed a cooler-than-expected trend. Consumer prices unexpectedly fell on a month-over-month basis for the first time since 2020, leading to optimism among investors.
S&P 500 futures rose 0.2%, crossing the 5,600 mark for the first time on Wednesday. Dow Jones Industrial Average futures also saw a 0.1% increase, while Nasdaq 100 contracts gained around 0.2%.
The Consumer Price Index (CPI) declined 0.1% from the previous month and increased by just 3.0% over the prior year in June. This marked the slowest rise in consumer prices since early 2021.
Stock gains have been on the rise this week as Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts. Thursday’s inflation report further fueled expectations of a rate cut by September, with around 87% of traders anticipating such an outcome.
In corporate news, Costco shares rose in pre-market trading after the retailer announced its first membership fee hike since 2017. This move was seen as reflecting price pressures on consumers.
The earnings season kicked off with reports from Pepsi and Delta Air Lines. Delta shares dropped approximately 10% after missing Wall Street estimates, while PepsiCo stock also dipped as its revenue disappointed investors.
Overall, the market is closely watching consumer trends and the impact on corporate earnings as the Federal Reserve considers potential rate cuts in the near future. Stay tuned for more updates on the evolving market conditions.
