Dow futures rise ahead of PPI data; PepsiCo lifts FY forecast
Investing.com — U.S. stock futures rose Thursday, extending the previous session’s gains after cooler-than-expected inflation data raised expectations of an early end to the Federal Reserve’s rate-hiking cycle.
By 06:50 ET (10:50 GMT), the Dow Futures contract was up 55 points, or 0.2%, S&P 500 Futures traded 16 points, or 0.4%, higher and Nasdaq 100 Futures climbed 108 points, or 0.7%.
The benchmark indices on Wall Street closed higher Wednesday after U.S. inflation cooled more than expected in June, with U.S. annual CPI falling to 3% in June, a drop of a full percentage point from last month, and core inflation came in at 0.2% in June against market expectations for 0.3%.
The blue chip Dow Jones Industrial Average gained 0.3%, the broad-based S&P 500 closed 0.7% higher and the tech-heavy Nasdaq Composite gained 1.2%.
The Federal Reserve is still expected to raise interest rates another quarter of a percentage point when it meets in late July, but these June consumer prices raised expectations that the July hike may be the last.
Another key indicator of inflation, the producer price index, is due later in the session, and the headline number is expected to rise 0.2% for the month and 0.4% for the year ended in June.
Additionally, core prices, which strip out volatile food and fuel prices, are expected to rise 0.2% for the month and 2.7% for the year.
In corporate news, Walt Disney (NYSE:DIS) stock rose 1.5% premarket after the entertainment giant announced it is extending CEO Bob Iger's contract through 2026, two years longer than originally planned, saying the move provides for continuity of leadership during its ongoing transformation.
PepsiCo (NASDAQ:PEP) stock rose 2.1% after the beverages giant raised its
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