U.S. Stock Futures Climb Post-Benign Inflation Report

U.S. stock index futures rose on Friday following a moderate inflation report that fueled hopes of interest-rate cuts by the Federal Reserve. The Personal Consumption Expenditures Price index increased by 0.1% in May, matching expectations. Core inflation, excluding food and energy, rose by 2.7% annually.

U.S. stock index futures experienced gains on Friday following a mild inflation report that bolstered hopes for potential interest-rate cuts by the U.S. Federal Reserve. The Commerce Department revealed that the Personal Consumption Expenditures Price index rose by 0.1% in May, consistent with economist expectations, signaling stable inflation.

On an annual basis, the overall inflation index stood at 2.3%, aligned perfectly with estimates. Meanwhile, when volatile items such as food and energy were excluded, the core inflation index showed a slightly higher annual increase of 2.7%, surpassing the forecast of a 2.6% rise.

By mid-morning trading, the favorable inflation data had contributed to notable gains across stock indexes. The Dow E-minis increased by 120 points, or 0.27%, the S&P 500 E-minis were up 16.25 points, or 0.26%, and the Nasdaq 100 E-minis gained 77.5 points, equivalent to a 0.34% rise.

(With inputs from agencies.)