U.S. Stocks Surge as Inflation Data Fuels Rate Cut Hopes

U.S. stock index futures increased on Friday after inflation data met expectations, maintaining predictions for an interest-rate cut by September. The preferred inflation metric, Personal Consumption Expenditures Price Index, showed a 0.1% monthly rise and 2.5% annual rise. Core PCE also rose, slightly exceeding forecasts.

U.S. stock index futures surged on Friday following inflation data that aligned with predictions, bolstering expectations for an interest-rate cut by September. The Personal Consumption Expenditures (PCE) Price Index, the U.S. Federal Reserve's preferred measure of inflation, increased by 0.1% monthly and 2.5% annually, both meeting forecasts.

Additionally, Core PCE, which excludes volatile food and energy costs, rose by 0.2% on a monthly basis, slightly above the predicted 0.1% increase, and increased by 2.6% annually. As of 8:34 a.m. ET, key futures indexes showed notable gains: Dow e-minis climbed 243 points (0.6%), S&P 500 e-minis advanced 42.5 points (0.78%), and Nasdaq 100 e-minis jumped 203 points (1.07%).