Stock Futures Rise After Reassuring Inflation Data

NEW YORK, USA — Stock futures rose early Tuesday as investors reacted positively to the latest inflation data. Futures tied to the Dow Jones Industrial Average climbed by 166 points, or 0.4%, while S&P 500 futures and Nasdaq futures also showed gains of 0.4% and 0.3%, respectively.

Investors expressed relief as the consumer price index (CPI) reported a 2.7% annual increase in July, slightly lower than analysts’ expectations of 2.8%. The core CPI, which excludes food and energy prices, rose by 3.1% year-on-year, just above the anticipated 3% increase. This data has led many to speculate that the Federal Reserve might consider cutting interest rates multiple times this year.

The market currently estimates a 91% chance of a rate cut in the coming month, according to recent trading data, up from 85% before the inflation report was released. Many traders are also increasing their predictions for rate cuts in October and December.

President Donald Trump’s announcement of a 90-day pause on additional tariffs on Chinese imports added to investor optimism, despite concerns regarding potential price increases from his broad tariff policies. Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, cautioned, “It’s too early to assume that rate cuts will fully counteract the economic drag from tariffs.”

Meanwhile, shares of several companies saw significant movement in early trading. A T-shirt maker surged by more than 42% amid news of a potential acquisition deal with Gildan for nearly $5 billion, while stablecoin issuer Circle reported a 53% increase in quarterly revenue, resulting in an 11% jump in its stock.

Traders are also looking forward to the upcoming producer price index report, which will give further insights into wholesale inflation before the Federal Reserve meets in September.

As the market opens, analysts continue to monitor how these developments will affect stock values in the long term.