US Futures Stay Steady After CPI Relief, Strong Bank Earnings Boost Wall Stree

Image Credit: Reuters

U.S. stock index futures saw slight increases on Wednesday evening following softer-than-expected consumer inflation data and strong bank earnings, which fueled Wall Street's gains. Investors also reacted positively to a U.S.-brokered ceasefire agreement between Israel and Hamas, easing some geopolitical concerns in the Middle East.

Despite the rally, uncertainty remains as President-elect Donald Trump prepares to take office next week, with market participants cautious about his potential trade tariffs. Upcoming economic reports, including jobless claims and retail sales data, are also on the horizon.

S&P 500 futures rose 0.1% to 5,993.0 points, Nasdaq 100 futures held steady at 21,409.25 points, and Dow Jones futures increased slightly to 43,498.0 points.

The release of consumer price index data on Wednesday showed a slight dip in inflation, particularly core CPI, which was lower than expected. This sparked speculation that cooling inflation could prompt the Federal Reserve to cut interest rates. However, overall inflation remains relatively sticky, and the market is still anticipating two rate cuts this year, down from the four originally projected. 

The positive bank earnings from JPMorgan Chase, Wells Fargo, Goldman Sachs, Citigroup, and BlackRock helped fuel Wall Street’s surge, marking a strong start to the fourth-quarter earnings season. Additionally, shares of Brazilian airline Azul surged over 4% after announcing a potential merger with rival Gol, which would create Brazil's largest airline operator.

Wall Street indexes posted significant gains on Wednesday, recovering from a slow start to the year. The S&P 500 rose 1.8% to 5,949.81 points, the NASDAQ Composite climbed 2.5% to 19,511.23 points, and the Dow Jones Industrial Average jumped 1.7% to 43,221.366 points.

Paraphrasing text from "Investing.com" all rights reserved by the original author.