US stocks continued their dramatic rally in futures trading ahead of Friday’s open afterwards Slowdown in inflation data in the consumer price index caught fiercest march On Wall Street since early 2020.
Futures contracts linked to the S&P 500 index (^ Salafist Group for Preaching and Combat(It rose 0.5%, while futures on the Dow Jones Industrial Average rose)^ DJI) added 165 points, or about the same percentage increase as Standard & Poor’s. Nasdaq Heavy Technology Composite Contracts (^ ninth) was 0.7% higher. Treasury yields held steady after their biggest one-day drop Thursday in more than a decade.
a A dramatic reversal in China’s anti-Coronavirus policy To reduce the amount of time travelers spend in quarantine to the country, sentiment has also boosted. Oil markets advanced as traders speculated that the move could boost demand for commodities, with West Texas Intermediate (WTI) futures rebounding more than $3 to narrow at $90 a barrel.
All three major averages jumped on Thursday, each recording their biggest single-day progress since recovering from the pain of the COVID crash two years ago. Mega moves were triggered by Lighter consumer price data for October That has fueled bets that the Federal Reserve may stop tightening financial conditions as early as next year. The S&P 500, Dow and Nasdaq are up 5.5% and 3.7%, or 1,200 points, and 7.4%, respectively.
“Overall, the report suggests that peak inflation may finally be behind us, although inflation may remain elevated for some time” — also noting that the figure supports 0.50 smallest. The percentage increase in prices for December that was telegraphed at this month’s FOMC meeting and investors are pricing.
“However, it is also important not to overemphasize a single report on inflation and the course of policy,” she added.
The Consumer Price Index (CPI) in October rose at an annual rate of 7.7% and increased by 0.4% during the month. on me “essential” basiswhich excludes the volatile food and energy components of the report, prices rose 6.3% year-on-year and 0.3% month-on-month.
Despite the moderation, many strategists maintain that the excitement with Fed officials is premature Still willing to stress After President Jerome Powell said last month that policymakers stillSome ways to go“on restoring price stability — a message that his colleagues at the central bank have since echoed in a series of public speeches.
Gregory Dako, chief economist at EY Parthenon, said in comments via email: “The Fed’s over-reliance combined with the fact that economic data will only show the labor market in real time and slowing inflation with lag, increases the odds of Excessive accident. .
Meanwhile, DataTrek’s Nicholas Colas points out another fact: Although inflation trends decline once they peak and begin to decline—as we saw in 1970, 1974, 1980, 1990, 2001 and 2008—this downward shift usually comes With recessions, there are no exceptions to the rule.
disturbance Continued into the world of coding Such as The FTX disaster unfoldswith billionaire former crypto hero Sam Bankman-Fried, as reported now Under investigation by the US Securities and Exchange Commission As the stock market seeks a cash bailout. Bitcoin was trading around $17,300 on Friday morning.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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