Wall Street Futures Surge as Inflation Eases; Delta Air Lines Stocks Plummet

Wall Street futures turned positive due to eased inflation in June, raising hopes for a September central bank rate cut. Despite this optimism, Delta Air Lines' shares fell sharply, dragging other airline stocks down. Meanwhile, AI-chip giant Nvidia and other megacap stocks posted gains, maintaining high Wall Street indexes.

Wall Street futures surged on Thursday following reports that inflation eased in June, fueling expectations for a central bank rate cut in September. However, Delta Air Lines shares dropped significantly, causing a ripple effect on other airline stocks.

The Labor Department's data revealed a 0.1% decline in the Consumer Price Index for June, contrary to economists' forecasts of a 0.1% rise. On an annual basis, CPI increased by 3%, below the expected 3.1%. Consequently, traders now see an 85% chance of a rate cut in September, up from 70% prior to the data.

Delta Air Lines saw an 8.8% decline in premarket trading after predicting lower-than-expected profits for the current quarter. This impacted other airline stocks, including United Airlines and American Airlines. In contrast, tech giant Nvidia rose 1.5%, contributing to gains in the S&P 500 and Nasdaq indices.