In the latest session, S&P 500 futures showed little movement as investors closely analyzed the latest inflation data in hopes of gaining insights into the Federal Reserve’s potential timeline for monetary policy adjustments.
Futures linked to the broader index were seen hovering around the flatline, while Nasdaq 100 futures experienced a slight uptick of 0.03%. Dow Jones Industrial Average futures also displayed a modest increase of 30 points or 0.08%.
According to the recently released consumer price index report, inflation rose by 3.1% year over year in November, with a month-over-month increase of 0.1%. This aligns with the expectations of economists surveyed by Dow Jones, who forecasted a 3.1% annual rise. In terms of the month-over-month figure, experts anticipated a steady holding pattern. Excluding food and energy, inflation remained in line with economist projections.
This data release comes as investors seek to conclude a successful year on a positive note. The Dow, S&P 500, and Nasdaq Composite are all currently enjoying three-day winning streaks and have experienced six consecutive weeks of gains. Moreover, the S&P 500 achieved its highest closing level since March 2022, and the 30-stock Dow settled at its most elevated point since January 2022.
UBS analysts, headed by David Lefkowitz, emphasized that the recent market rally has been fueled by lower interest rates and an increasing belief among investors that the Federal Reserve has concluded its tightening cycle. They noted that cooling inflation figures, together with favorable labor market conditions and recent Fed commentary, have acted as key factors in driving this sentiment.
Source (CNBC)
