U.S. stock index futures traded near flat in the early hours of this Wednesday, after the strong rise recorded in the previous session, driven by an inflation report below expectations. The result reinforced the perception that the Federal Reserve may adopt a less aggressive stance regarding interest rates in the coming months.
At the start of trading, S&P 500 futures advanced to 7.604,25 pontos (+0,17%), while those of the Dow Jones were traded at 52.814,00 pontos (+0,04%). Nasdaq 100 futures led the gains, rising 0,60%, to 29.970,00 pontos, while those of the Russell 2000 advanced 0,04%, to 2,981.00 points. The volatility index VIX was falling 3,85%, to 16.50 points, indicating less demand for protection among investors.
Among commodities, gold was trading at US$ 4.044,80 per ounce, down 0,61%. Meanwhile, WTI oil for August delivery was up 1,07%, to US$ 80,19 per barrel. In the cryptocurrency market, Bitcoin was quoted at US$ 64.551,99, up 3,32% over the last 24 hours, following the move toward greater risk appetite in global markets.
The improvement in investor sentiment came after the release of the United States Consumer Price Index (CPI). In June, the indicator posted a monthly decline of 0,4%, while annual inflation came in at 3,5%, below market expectations. Economists previously consulted had projected a decline of 0,2% for the month and annual inflation of 3,8%.
The figures fueled expectations that the Federal Reserve may reduce the pace of monetary tightening. Bets on an interest rate hike at the July meeting decreased significantly compared to the previous day. Even so, part of the market continues to price in an increase of 0,25 ponto percentual by the September meeting, if the next economic indicators show renewed inflationary pressures.
The upbeat mood was also seen in Asia-Pacific stock markets. In South Korea, the index Kospi opened up 6,3%, while the Kosdaq advanced 4%. In Japan, the Nikkei 225 and the Topix posted gains of 0,9% each. Meanwhile, Australia's S&P/ASX 200 started trading up 0,6%.
“Although the energy sector played an important role in slowing prices, monetary easing was quite broad and spread across several categories, a relief for investors,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “However, the Fed and the economy are still not out of danger — inflation remains high in absolute terms, the price of oil has risen again, and artificial intelligence is proving to be very inflationary at the moment.”
In addition to the inflation data, investors are following another stage of the corporate earnings season in the United States. The quarterly results of companies such as are expected United Airlines, Morgan Stanley, Johnson & Johnson and BlackRock, which may influence stock market performance throughout the trading session.
Earnings season began on a positive note. JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs reported profits above analysts’ expectations, helping sustain market optimism as investors continue to assess upcoming economic indicators, the path of inflation, and the Federal Reserve’s next steps.