Dow futures surge after U.S. inflation cools; Home Depot quarterly sales dip
Investing.com — U.S. stock futures surged higher Tuesday after inflation cooled more than expected in October, offering support to the view that the Federal Reserve may be closing to ending its rate-hiking cycle.
By 09:40 ET (13:40 GMT), the Dow Futures contract was up 295 points, or 0.9%, S&P 500 Futures traded 50 points, or 1.1%, higher and Nasdaq 100 Futures climbed 230 points, or 1.5%.
The main indices on Wall Street closed mixed on Monday in subdued trading at the start of a new week. The 30-stock Dow Jones Industrial Average added 0.2%, while the benchmark S&P 500 dipped by 0.1% and the tech-heavy Nasdaq Composite shed 0.2%.
These gains followed the release of data showing headline inflation in the U.S. slowed by more than expected in October, in a boost for Federal Reserve officials keen on corralling price pressures in the world's largest economy.
The U.S. consumer price index rose by 3.2% in October on an annualized basis, decelerating from a rate of 3.7% in September. It was the reading's first decline in three months. Month-on-month, the measure came in flat, down from a gain of 0.4%.
Economists had seen the figures at 3.3% annually and 0.1% from the prior month.
Fed Chair Jerome Powell indicated last week that further interest rate hikes were still possible as the central bank attempts to bring inflation back down to its 2% target, but the market still widely expects the Fed to stand pat at the year’s last meeting as inflationary pressures show signs of cooling. This result has prompted investors to speculate that the Fed's next move may be a cut next year.
On the corporate side of the equation, it’s the turn of the big-box retailers to take the spotlight.
Home Depot (NYSE:HD) released its quarterly results
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