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US stock futures edge higher after cooling inflation lifts rate hopes
Cooling CPI pushed the implied probability of a September Fed hike lower to about 36% from 48% a day earlier, according to CME FedWatch.
US stock futures rose in European trading as softer inflation data shifted Federal Reserve rate expectations, according to FXStreet. Dow Jones futures were up 0.08% to around 53,910, while S&P 500 futures rose 0.09% to about 7,780 and Nasdaq 100 futures gained 0.06% to near 29,870.
The inflation update showed July headline CPI slipping slightly to 3.4% year over year, while core CPI cooled to 2.5%, matching market expectations. Investors were also set to watch US Producer Price Index data later in the day.
FXStreet said the cooling inflation reinforced expectations for a more accommodative Fed stance. The CME FedWatch tool indicated the odds of a September rate hike fell to roughly 36% from 48% the prior day.
In the prior session, US stock indices closed mostly higher, with the Nasdaq up 0.7% and the S&P 500 rising 0.3% toward near record levels, while the Dow finished virtually flat.
Latest closeS&P 500 7,748.50 ▲0.3%|Nasdaq Comp. 26,588.49 ▲0.5%|Dow Jones 53,770.27 ▼0.0%