Stock futures are on the upswing this Thursday as the latest data release indicates that inflation accelerated in July compared to June.
Dow Jones Industrial Average (^DJI) contracts have advanced by approximately 0.5%, equating to a gain of 187 points. S&P 500 (^GSPC) futures are also experiencing an uptick of around 0.6%, and futures on the tech-focused Nasdaq 100 have surged by 0.9%.
The Consumer Price Index (CPI) witnessed a 0.2% increase over the preceding month and a 3.2% increase over the previous year in July. While this aligns with June’s 0.2% month-on-month growth, it surpasses the 3% annual upswing recorded in June. Economists surveyed by Bloomberg had projected a 3.3% annual surge for July.
Looking at the “core” aspect of the CPI, which excludes the more volatile expenses like food and gas, July’s prices exhibited a 0.2% climb over the prior month and a 4.7% leap over the past year. These figures slightly exceeded economist predictions. It’s noteworthy that core inflation’s pace of increase is at its most subdued since October 2021.
In the midst of this, the earnings season is gradually winding down. Alibaba (BABA) and Ralph Lauren (RL) are gearing up to unveil their quarterly reports. Disney (DIS) shares also saw a premarket uptick following the company’s announcement of a hike in monthly prices for its ad-free streaming plans.
As the market eagerly awaits the July CPI data, these upward movements in stock futures indicate a sense of optimism among investors in response to the inflation trends.
