Wall Street futures are rising ahead of the New York open after November’s consumer price index came in softer than expected and strong earnings from Micron Technology provided some relief.
Headline CPI rose 2.7% year over year, below the 3.1% consensus, while core CPI, which excludes food and energy, increased 2.6%, missing the 3% forecast. The data is easing inflation concerns and supporting expectations that the Fed could continue cutting rates.
Yesterday saw heavy selling in tech. The Nasdaq fell 1.81%, leading losses, while the S&P 500 slipped 1.16% and the Dow Jones Industrial Average edged down 0.47%. Investors were left uncertain after solid November jobs data, which showed employment is not weakening fast enough to give the Fed a clear signal to move aggressively on rate cuts. Oracle shares fell nearly 6% following reports that financing had dropped for its planned $10bn data centre project, highlighting caution around AI-related tech spending.
Micron Technology’s earnings and guidance released overnight helped steady the market. As a supplier in Nvidia’s server supply chain, Micron’s results offered evidence that AI demand is holding up, giving investors reason to step back into equities after yesterday’s losses.
The CPI also contributed to the relief rally in futures. Core goods inflation ticked down to 1.4% from 1.5%, new vehicle prices rose 0.6%, and used cars and trucks increased 3.6%, down from 5.1% in September. Services excluding energy rose 3%, medical care services 3.3%, and transportation services 1.7%. Energy and shelter costs remain elevated, but overall, the report signals moderation in price pressures.
Taken together, the softer inflation reading and Micron’s earnings are supporting a modest bounce ahead of the New York open.