SA: Nasdaq, S&P, Dow futures rocket higher, yields tumble on tame inflation numbers

10/11/2022

SEEKING ALPHA reports:

Stock index futures are soaring Thursday as core and headline consumer inflation rose less than expected.

Nasdaq 100 futures (NDX:IND) +4.2%, S&P futures (SPX) +3.1% and Dow futures (INDU) +2.4% jumped right after the numbers.

Rates are tumbling. The 10-year Treasury yield (US10Y) is down 17 basis points to 3.98%. The 2-year yield (US2Y) is down 18 basis points at 4.45%. The dollar index (DXY) is down 1.2%.

After several hotter-than-expected CPI reports, stock and bond markets were clearly positioning for continued disappointing inflation news. Fed funds futures now price in a 54% chance of a 50-basis-point hike in December after tilting to 75 bps before the numbers arrived.

The 0.3% monthly rise in core CPI, compared with forecasts for 0.5%, was the softest since September 2021…

More here.

Now read this: “Dow futures surge more than 800 points after October inflation report is lighter than expected“.

And this: “Peak inflation in Europe ‘is almost within reach,’ European Central Bank member says“.

This: “‘Cool’ CPI Print Sparks Massive Dovish Repricing In Rate Expectations, Bonds & Stocks Soar“.

And this: “Inflation Huge Miss: Core CPI Slides From 40-Year-High, Real Wages Tumble For 19th Straight Month“.

(Main US indexes down 2%-2.5% yesterday, 9 November.)