U.S. Stocks Surge as Inflation Eases, Interest Rate Cuts Expected

U.S. stock index futures rose on Thursday following a softer inflation report, boosting expectations of future interest rate cuts by the Federal Reserve. The Consumer Price Index increased by 2.7% annually in November. Jobless claims were slightly lower than expected, further influencing market sentiment.

U.S. stock index futures climbed on Thursday as investors reacted positively to a weaker-than-expected inflation report, which strengthened the case for potential interest rate cuts by the Federal Reserve in the coming months.

The Consumer Price Index (CPI) indicated a 2.7% annual rise in November, falling short of the anticipated 3.1% increase, according to a survey of economists by Reuters. The core CPI, which excludes the more volatile categories of food and energy, showed a 2.6% rise, also below the expected 3% increase.

Accompanying this report, jobless claims fell to 224,000 for the week ending December 13, slightly below the forecast of 225,000 claims, further lifting market sentiment. At 08:31 a.m. ET, the Dow E-minis rose by 181 points, or 0.38%, while the S&P 500 E-minis increased by 41.25 points, or 0.61%, and the Nasdaq 100 E-minis jumped 268.5 points, or 1.09%.

(With inputs from agencies.)