- November 11, 2022
- By: Admin1_blog
- US Market
Stock futures rose early Friday after China said it would ease some covid measures, building on optimism from better-than-feared inflation data that fueled a broad market rally Thursday.
Futures tied to the Dow Jones Industrial Average added 210 points, or 0.62%. S&P 500 futures were up 0.7% and Nasdaq 100 futures rose 0.93%, or 108 points.
In regular trading, the major averages 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.
The rally 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 plunged after the data release, while tech stocks soared.
“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 10:00 a.m. ET.