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Inflation Cools, Fed Easing Hopes Reignited
19 Dec
Summary
- US stock futures showed mixed movement after a week of volatility.
- Cooling inflation data from Thursday boosted Wall Street optimism.
- Nike shares declined post-market due to continued China market weakness.
US stock futures showed a mixed performance overnight, attempting to build on Thursday's rally. Optimism on Wall Street was bolstered by encouraging inflation data and receding worries surrounding artificial intelligence. Investors have navigated a busy week for economic reports, with hopes for interest rate cuts in the coming year remaining intact.
The Consumer Price Index report on Thursday revealed a surprisingly rapid cooling of inflation. This positive news spurred a market rally, even as some experts noted potential data limitations due to government shutdown impacts. A clearer picture of price pressures is anticipated from January's figures.
Coupled with a softening job market, the improved inflation outlook has revived expectations that the Federal Reserve will continue its easing policy. Meanwhile, Nike shares faced a significant decline in after-hours trading. The company reported ongoing challenges in its China market, despite exceeding revenue expectations.
