Wall St set for higher open as soft inflation data eases rate-hike fears
SPY•Wall Street’s main indexes were set to open higher after August PCE inflation rose 0.3% month over month, below the 0.4% estimate. Futures were up 0.35% for the Dow, 0.4% for the S&P 500 and 0.39% for the Nasdaq 100.
1. Inflation data lifts futures
The PCE price index rose 0.3% in August from the prior month, compared with economists’ 0.4% estimate, and was up 3.4% year over year versus an estimated 3.7%. Core PCE increased 0.2% month over month and 3% annually, below estimates of 0.3% and 3.3%, respectively. Traders saw about a 37% chance of an October rate hike, down from about 45% before the data.
2. Indexes set for gains
At 8:42 a.m. ET, Dow futures were up 0.35%, S&P 500 futures 0.4% and Nasdaq 100 futures 0.39%. Most megacap and growth stocks ticked higher in premarket trading, while chip stocks were broadly higher.
3. Boeing wins Navy contract
Boeing rose 2.5% after the Pentagon selected it to build the US Navy’s next-generation stealth fighter. The $20 billion development contract went to Boeing over Northrop Grumman; Northrop shares fell 4%.
