Stock futures rise after S&P 500 posts its biggest one-day rally since 2020


Wall Street set for more gains at the open

Stock futures rose Friday after China said it would ease some Covid measures, building on optimism from lighter-than-feared inflation data that fueled a broad market rally in the previous session.

Futures tied to the Dow Jones Industrial Average added 152 points, or 0.5%. S&P 500 futures were up 0.5% and Nasdaq 100 futures rose 0.7%.

China pulled back some Covid restrictions including shortening quarantine time for international travelers by two days, according to state media on Friday.

The news built on a rally that came after the Bureau of Labor Statistics reported a smaller-than-expected rise in consumer prices for the month of October, giving investors hope that inflation may be cooling. U.S. Treasury yields dropped after the data release, while tech stocks soared.

The major averages on Thursday posted their biggest one-day rallies since 2020. The Dow jumped more than 1,200 points. The S&P rose 5.5%, and the Nasdaq Composite surged about 7.4%.

All of the indexes are on pace for a winning week. The Dow is up 4% on a weekly basis, while the S&P and Nasdaq are on pace for increases of 4.9% and 6.1%, respectively. The three averages are also on track for a positive month.

“Markets across the board are euphoric following the cooler CPI this morning… But today’s CPI report, while indicating that inflation is moving in the right direction, does not suggest that inflation has been rooted out of the broader economy,” said Quincy Krosby, chief global strategist for LPL Financial. “And it does not suggest that Fed’s job to restore price stability is complete.”

October’s CPI increased 0.4% for the month and 7.7% from a year ago. Respective estimates from Dow Jones were for gains of 0.6% and 7.9%.

Investors are looking forward to preliminary University of Michigan consumer sentiment data, due out at 10 a.m. ET.



Read More: Stock futures rise after S&P 500 posts its biggest one-day rally since 2020

2022-11-11 04:48:00

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More