Stock futures rose Friday after China said it will ease some COVID measuresbased on optimism from the lighter inflation data from concerns that fueled a broad market rally in the previous session.
Futures linked to the Dow Jones Industrial Average added 152 points, or 0.5%. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.7%.
Thursday’s major averages posted their biggest one-day rise since 2020. The Dow Jones jumped more than 1,200 points. The S&P is up 5.5%, and the Nasdaq Composite is up about 7.4%.
All indicators are fast paced for a winning week. The Dow is up 4% on a weekly basis, while the S&P and Nasdaq are on track to increase 4.9% and 6.1%, respectively. All three rates are also on track for a positive month.
The rally came after the Bureau of Labor Statistics reported a lower than expected height in consumer prices for October, giving investors hope that inflation may subside. US Treasury yields fell after the data release, while technology stocks rose.
said Quincy Crosby, global chief strategist for LPL Financial. This does not indicate that the Fed’s mission to restore price stability is complete.
October CPI rose 0.4% for the month and 7.7% from a year ago. Estimates from Dow Jones were for a gain of 0.6% and 7.9%.
Investors are looking forward to preliminary consumer confidence data from the University of Michigan, due out at 10 AM ET.
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