U.S. Stock Futures Surge Amid Positive Outlook on Inflation Report

U.S. stock index futures rose on Monday, rebounding from last week’s losses. Investors are optimistic about a soft landing for the U.S. economy ahead of an important inflation report. Key megacap stocks like Tesla, Boeing, Dell Technologies, and Palantir saw significant premarket gains, spurred by various positive developments.

U.S. stock index futures rose on Monday, rebounding from heavy losses last week, as investors remained optimistic about soft landing prospects for the U.S. economy ahead of a crucial inflation report later in the week.

All megacap stocks rose in premarket trading, with Tesla leading the gains after a 2% jump. Global markets were rattled last week as uncertainty over the U.S. economy's health rippled across assets, adding fuel to an already volatile period that has investors grappling with a shift in the Federal Reserve's policy and worries over stretched valuations.

For the year, S&P 500 still remains 13.4% higher as hopes of a soft landing for the U.S. economy remained alive with the Fed expected to begin its rate-cutting cycle next week. 'Today, the markets remain cautiously optimistic, reflecting hopes that rate cuts will avoid a downturn. Yet, if economic conditions worsen sharply, fears of a recession could outweigh the benefits of rate cuts,' said Seema Shah, chief global strategist at Principal Asset Management.

'History shows that rate cuts themselves are not the enemy —it's the economic context in which they occur that investors should be paying close attention to.' Markets will be squarely focused on U.S. consumer prices data on Wednesday that is expected to show a moderation in inflation in August to 2.6% on a yearly basis, while on a monthly basis it is expected to remain unchanged at 0.2%.

This will be followed by producer prices data on Thursday. Money markets currently see a 75% chance of a 25-basis-point rate reduction by the Fed next week and expect a total monetary easing of 100 bps by the end of the year, according to CME's FedWatch Tool.

At 04:39 a.m., Dow E-minis were up 170 points, or 0.42%, Nasdaq 100 E-minis were up 134.25 points, or 0.73% and S&P 500 E-minis were up 28.75 points, or 0.53%. Among individual movers, Boeing advanced 3% after it reached a tentative agreement with a union representing more than 32,000 workers in the U.S. Pacific Northwest, in a deal that could help avert a possible crippling strike as early as Sept. 13.

Dell Technologies and Palantir rose nearly 7% each in early trade, Erie climbed 2% as they are set to join the S&P 500 index on Sept. 23. These companies will replace American Airlines Group, Etsy and Bio-Rad Laboratories, respectively, from the index.

(With inputs from agencies.)