Inflation Cools, Boosting Stock Futures with Rate Cut Hopes

U.S. stock index futures surged Wednesday following better-than-expected inflation data. The Consumer Price Index remained steady on a monthly basis and rose 3.3% annually, below economists' forecasts. Excluding food and energy, CPI rose 0.2%. The data has fueled optimism about potential interest-rate cuts later this year.

U.S. stock index futures rose on Wednesday after key inflation data showed price pressures cooled more than expected, boosting hopes for interest-rate cuts later this year. A Labor Department report showed the Consumer Price Index was unchanged on a monthly basis, where it was expected to rise 0.1%. On an annual basis, inflation rose 3.3%, lower than economists' expectation of a 3.4% increase.

CPI, excluding volatile food and energy prices, rose 0.2% compared with expectations of a 0.3% rise, while core inflation rose 3.4% on an annual basis versus a forecast of 3.5%. At 8:34 a.m. ET, Dow e-minis were up 234 points, or 0.6%, S&P 500 e-minis were up 40.25 points, or 0.75%, and Nasdaq 100 e-minis were up 187.75 points, or 0.98%.