Stock futures rose on Thursday after the October reading of consumer prices raised hopes that inflation had peaked.
Futures linked to the Dow Jones Industrial Average jumped 623 points, or 1.9%. S&P 500 futures jumped 2.5%, while Nasdaq 100 futures rose more than 3%.
follow loss day With the Dow Jones down 646.89 points, or 1.95%. The Nasdaq Composite and S&P 500 are down nearly 2.5% and about 2.1%, respectively.
The declines came amid uncertainty caused by the US midterm elections. The market had hoped that Republicans would take overall control of the House and Senate on Tuesday – a situation that would create a stalemate in Washington, D.C. In fact, the race in the Senate between Raphael Warnock, the current Democrat, and Herschel Walker will do Head to the run-off in December.
Stocks’ woes worsened late Wednesday after cryptocurrency exchange Binance said it was Reversing plans to acquire rival FTX. This led to a decline in the technology sector and a decline Bitcointo the lowest level last seen in 2020.
The lack of clarity around the election, as well as uncertainty about upcoming October CPI data and corporate earnings reports were driving the sell-off, said Chris Zaccarielli, chief investment officer at The Independent Advisor Alliance.
“Those three things lead to uncertainty,” he said. “And as everyone knows, markets don’t really like uncertainty.”
Consumer Price Index report for the month of October, on Thursdays at 8:30 a.m. ET, is the next focal point for investors. Economists polled by Dow Jones expect the headline consumer price index to have risen 0.6% in October from September, or 7.9% over the past year. It is a major report of the Federal Reserve, which will meet again in mid-December.
Weekly jobless claims are due Thursday morning.
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