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Futures rise after softer CPI boosts rate-cut bets

BY Reuters | ECONOMIC | 12/18/25 08:37 AM EST

Dec 18 (Reuters) - U.S. stock index futures extended their gains on Thursday, as a softer-than-anticipated inflation report reinforced market expectations of future interest rate cuts by the Federal Reserve.

A Labor Department report showed the Consumer Price Index (CPI) rose 2.7% on an annual basis in November, compared with an estimated 3.1% rise, according to economists polled by Reuters.

The core figure, which excludes volatile food and energy components, came in at 2.6% on an annual basis, versus an estimated 3% increase.

Separately, a report showed jobless claims were 224,000 for the week ended December 13, versus an estimate of 225,000.

At 08:31 a.m. ET, Dow E-minis were up 181 points, or 0.38%, S&P 500 E-minis were up 41.25 points, or 0.61% and Nasdaq 100 E-minis were up 268.5 points, or 1.09%.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Tasim Zahid)

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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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