US STOCKS SNAPSHOT-Futures jump as inflation cools in May

BY Reuters | ECONOMIC | 06/12/24 08:37 AM EDT

June 12 (Reuters) - U.S. stock index futures rose on Wednesday after key inflation data showed price pressures cooled more than expected, boosting hopes for interest-rate cuts later this year.

A Labor Department report showed the Consumer Price Index was unchanged on a monthly basis, where it was expected to rise 0.1%. On an annual basis, inflation rose 3.3%, lower than economists' expectation of a 3.4% increase.

CPI, excluding volatile food and energy prices, rose 0.2% compared with expectations of a 0.3% rise, while core inflation rose 3.4% on an annual basis versus a forecast of 3.5%.

At 8:34 a.m. ET, Dow e-minis were up 234 points, or 0.6%, S&P 500 e-minis were up 40.25 points, or 0.75%, and Nasdaq 100 e-minis were up 187.75 points, or 0.98%. (Reporting by Lisa Mattackal in Bengaluru; Editing by Pooja Desai)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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