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Stock futures rise after tame inflation data as market looks to extend Wednesday’s rally

Wall Street set to open in the red after Wednesday's rally

Stock futures turned up slightly Thursday after some inflation data closely watched by the Federal Reserve came in less than expected.

Futures tied to the Dow Jones Industrial Average traded 68 points, or 0.2%, higher. Nasdaq-100 and S&P-500 futures gained 0.5% and 0.4% respectively.

Futures gained following the release of the October Core Personal Consumption Expenditures Index, a closely watched gauge of spending. October data showed the index rose 0.2%, below the consensus estimate of 0.3% collected from economists by Dow Jones. The 10-year Treasury yield decreased after the report.

The moves followed a sharp rally Wednesday, with the Nasdaq Composite and the S&P snapping three-day losing streaks after Powell appeared to confirm a slowdown in the central bank’s tightening — a question that’s lingered in recent weeks. The Dow jumped 737.24 points, or 2.2%, on Wednesday, while the tech-heavy Nasdaq Composite and S&P 500 surged 4.4% and 3.1%, respectively.

“Whether intentional or not, Powell sent a message that, in light of the tightening that’s already been done, he’s now more focused on the growth outlook and the employment picture than he is on bringing down inflation to 2%,” said Chris Senyek, chief investment strategist at Wolfe Research.

Wednesday also marked the end of a winning month for the major averages. The Nasdaq rose 4.37% — its second positive month in a row for the first time since a three-month streak ending December 2021. The S&P 500 and Dow rose 5.38% and 5.67%, respectively, to finish their second month of gains for the first time since August 2021.

Salesforce’s stock shed 7% in premarket trading on news that co-CEO Bret Taylor is stepping down. Snowflake tumbled about 6% on light product revenue guidance. Discount retailer Dollar General dropped 6% after it cut its full-year forecast, citing higher costs.

On the other hand, Okta shot up nearly 16% after the identity management software company issued an upbeat full-year financial outlook. Five Below and Kroger gained about 9% and 3%, respectively, following reports showing the companies beat expectations for their most recent quarters.

Read More:Stock futures rise after tame inflation data as market looks to extend Wednesday’s rally