Stocks Climb On Hopes Of Fed Rate Cuts Amid Weak Inflation Data

Futures for the S&P 500 and Nasdaq indexes rose on Thursday after weaker-than-expected producer inflation data heightened expectations of interest rate cuts from the Federal Reserve. The Labor Department reported a decline in the producer price index for May and an increase in jobless claims for the latest week.

Futures for the S&P 500 and the Nasdaq indexes rose on Thursday after weaker-than-forecast producer inflation data fanned expectations of interest rate cuts from the Federal Reserve.

A Labor Department report showed the producer price index (PPI) fell 0.2% month-on-month in May, compared with a 0.1% increase expected by economists polled by Reuters. Annually, it rose 2.2%, lower than estimates of 2.5%. The core figure, excluding volatile food and energy items, was flat month-on-month, compared with an estimated 0.3% increase. On an annual basis, it rose 2.3% versus estimates of 2.4%.

Separately, initial claims for state unemployment benefits rose to a seasonally adjusted 242,000 for the week ended June 8, the Labor Department said on Thursday. Economists polled by Reuters had forecast 225,000 claims in the latest week. Continued jobless claims for the week ending June 1 were 1.82 million, compared with expectations of 1.798 million.

At 8:33 a.m. ET, Dow e-minis were down 9 points, or 0.02%, S&P 500 e-minis were up 23.5 points, or 0.43%, and Nasdaq 100 e-minis were up 181.75 points, or 0.93%.