US Futures Point Higher, Adding to Thursday’s Huge Gains

November 11, 2022by Joe McDonald and Matt Ott, Associated Press
US Futures Point Higher, Adding to Thursday’s Huge Gains
The New York Stock Exchange is seen in New York, Thursday, Feb. 24, 2022. (AP Photo/Seth Wenig)

Wall Street pointed higher in premarket trading Friday, adding to the hefty gains from a day earlier when government data showed that U.S. inflation eased more than expected, spurring hopes the Federal Reserve might scale down plans for more interest rate hikes.

Futures for the Dow Jones Industrial average rose 0.5%. Futures for the S&P 500 also gained 0.5% following Thursday’s biggest single day gain for the benchmark in 2 1/2 years.

On Thursday, the government reported consumer prices rose 7.7% over a year ago in October, lower than the 8% expected by economists and the fourth straight monthly decline.

The announcement “drove a ‘more dovish’ calibration of interest rate expectations,” Yeap Jun Rong of IG said in a report.


The Fed and central banks in Europe and Asia are raising rates to cool inflation that is at multi-decade highs. Investors worry that might tip the global economy into recession. They hope lower inflation might prompt the Fed to ease off plans for more increases.

Forecasters warned Thursday it was too early to be certain that prices are under control. Fed officials have said rates might have to stay elevated for some time.

In Europe at midday, the FTSE 100 in London gained slipped 0.4%, the DAX in Frankfurt added 0.4% and the CAC 40 in Paris was 0.5% higher, but declining from earlier gains of more than 1%.

In Asia, Hong Kong’s Hang Seng index soared 7.7% to 17,325.66 and the Nikkei 225 in Tokyo gained 3% to 28,263.57.

The Shanghai Composite Index added 1.7% to 3,078.29 after the ruling Communist Party promised shorter quarantines for travelers arriving in China and other changes to anti-virus tactics to reduce the cost of a severe “zero-COVID” strategy that has disrupted the economy.

The Kospi in Seoul rose 3.4% to 2,483.16 and Sydney’s S&P-ASX 200 was up 2.8% at 7,158.00.

India’s Sensex gained 1.8% to 61,674.31. New Zealand and Southeast Asian markets advanced.

Thursday’s U.S. inflation data reassured investors that inflation there was declining from its June peak of 9.1%, though forecasters said the Fed’s campaign to cool price rises was far from over.


Traders expect the Fed to raise its benchmark lending rate in December but by a smaller margin of half a percentage point following four increases of 0.75 percentage points, triple its usual margin. That benchmark stands at a range of 3.75% to 4%, up from close to zero in March.

The Fed is trying to slow economic activity to reduce pressure for prices to rise.

The latest figures are a sign the Fed is “on the right path,” but it will face “a lot of variables” over the next few quarters, Edward Moya of Oanda said in a report. He said the benchmark rate could be raised to 5% and “if inflation proves to be stickier, it could be as high as 5.50%.”

Core inflation, which strips out volatile food and energy prices and is more closely watched by the Fed, was 6.3% over a year earlier, down from September’s 6.6% and below the consensus forecast of 6.5%. Core prices rose 0.3% month on month, half of September’s 0.6% gain.

The yield on the 10-year Treasury, which helps set rates for mortgages and other loans, fell to 3.82% on Thursday from 4.15%. The two-year yield, which more closely follows expectations for Fed action, fell to 4.32% from 4.62% and was on pace for its sharpest fall since 2008.

Bond markets are closed Friday for the Veterans Day holiday.

In energy markets, benchmark U.S. crude gained $2.76 to $89.23 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 64 cents to $86.47 on Thursday. Brent crude, the price basis for international oil trading, advanced $2.68 to $96.35 per barrel in London. It rose $1.02 to $93.67 the previous session.

The dollar declined to 139.50 yen from Thursday’s 141.83 yen. The euro rose to $1.0308 from $1.0180.

On Thursday, the S&P 500 rose 5.5%, propelled by big gains for tech heavyweights. Amazon soared 12.2%, Apple rose 8.9% and Microsoft climbed 8.2%.

The Dow Jones Industrial Average gained 3.7%, or more than 1,200 points, to 33,715.37.

The Nasdaq composite, dominated by tech stocks, shot up 7.4% to 11,114.15 for its best day since March 2020, when Wall Street was rebounding from a crash at the start of the coronavirus pandemic.


—-

McDonald reported from Beijing; Ott reported from Washington.

A+
a-

In The News

Health

Voting

Economy

November 21, 2022
by Tom Ramstack
Railroad Unions Reject Labor Contract in a Potential Blow to US Economy

WASHINGTON — Railroad unions that rejected a proposed labor contract on Monday are threatening the nation’s economy as the Christmas... Read More

WASHINGTON — Railroad unions that rejected a proposed labor contract on Monday are threatening the nation’s economy as the Christmas season approaches. The “no” vote by the unions sets the stage for a strike as soon as Dec. 9, unless Congress intervenes to stop it. Economists... Read More

November 15, 2022
by Dan McCue
Wholesale Prices Moderate, Adding to Hopes That Inflation Is Waning

WASHINGTON — Wholesale prices increased less than expected in October, yet another indicator that inflation, which has stubbornly dogged the... Read More

WASHINGTON — Wholesale prices increased less than expected in October, yet another indicator that inflation, which has stubbornly dogged the economy for much of the year, is finally beginning to wane. The producer price index, a measure of the prices that companies get for finished goods... Read More

November 11, 2022
by Tom Ramstack
Federal Judge Orders End to Student Debt Relief Plan

DALLAS, Texas — A federal judge in Texas on Thursday blocked the Biden administration’s plan to wipe out as much... Read More

DALLAS, Texas — A federal judge in Texas on Thursday blocked the Biden administration’s plan to wipe out as much as $20,000 in student debt for millions of borrowers. He said the plan exceeds the authority of the president without first getting legislative approval from Congress.... Read More

US Futures Point Higher, Adding to Thursday's Huge Gains

Wall Street pointed higher in premarket trading Friday, adding to the hefty gains from a day earlier when government data... Read More

Wall Street pointed higher in premarket trading Friday, adding to the hefty gains from a day earlier when government data showed that U.S. inflation eased more than expected, spurring hopes the Federal Reserve might scale down plans for more interest rate hikes. Futures for the Dow Jones... Read More

November 3, 2022
by Dan McCue
Retailers Predict Healthy Holiday Sales Despite Inflation

WASHINGTON — Holiday retail sales during November and December will grow between 6% and 8% compared to last year, and... Read More

WASHINGTON — Holiday retail sales during November and December will grow between 6% and 8% compared to last year, and come in somewhere in excess of $942.6 billion despite stubbornly persistent inflation woes, the National Retail Federation said on Thursday. Last year’s holiday sales grew 13.5%... Read More

October 25, 2022
by Dan McCue
Record Number of Americans Have Bank Accounts, FDIC Says

WASHINGTON — Despite a global pandemic that stalled state and local economies for months, a record 96% of Americans had... Read More

WASHINGTON — Despite a global pandemic that stalled state and local economies for months, a record 96% of Americans had bank accounts in 2021, according to a new survey released Tuesday by the Federal Deposit Insurance Corporation. The FDIC’s “2021 National Survey of Unbanked and Underbanked... Read More

News From The Well
scroll top