S&P 500 Futures Jump 0.4% After January CPI Shows Smallest Annual Gain Since 2021
U.S. consumer prices rose 0.3% in January and 3.4% year-on-year, the smallest annual gain since March 2021, easing pressure on the Federal Reserve to raise interest rates further. S&P 500 futures climbed 0.4%, boosting premarket volume on CME’s equity futures platform as traders trimmed hawkish bets.
1. January CPI Data
January’s Consumer Price Index rose 0.3% month-on-month and 3.4% year-on-year, marking the slowest annual inflation pace since March 2021. The softer inflation reading reduces expectations for further rate hikes, leading traders to dial back bets on aggressive Fed tightening.
2. Equity Futures Reaction
S&P 500 futures jumped 0.4% in premarket trading as market participants shifted to a more dovish outlook. The move fueled higher activity on CME’s equity futures platform, with traders repositioning ahead of the Fed’s next policy decision.