US STOCKS SNAPSHOT-Futures surge after CPI data spurs bets of smaller rate hikes

U.S. stock index futures surged on Thursday after data showed consumer prices eased more than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes.

U.S. stock index futures surged on Thursday after data showed consumer prices eased more than expected in October, spurring hopes that the Federal Reserve might scale down the size of its future interest rate hikes. The Labor Department said consumer prices advanced 7.7% in the 12 months through October, after rising 8.2% at the end of September, while the core rate, which excludes volatile food and energy prices, increased 6.3% on a year-on-year basis last month, from 6.6% in September.

Economists polled by Reuters had forecast the CPI and core number would rise 8% and 6.5%, respectively. The report prompted traders to adjust their rate hike bets, with bets of a 50-basis point rate hike in December jumping to more than 70% from 45% before the data came in.

At 08:33 a.m. ET, Dow e-minis were up 644 points, or 1.98%, S&P 500 e-minis were up 94.25 points, or 2.51%, and Nasdaq 100 e-minis were up 367 points, or 3.39%.

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