Stock futures falter after inflation prints in line

US stocks rose on Thursday during midday trading as investors digested new inflation data that showed prices at a slower annual rate in Decembera report in line with economists’ expectations.

S&P 500 Index (^ The Salafist Group for Preaching and Combat(up 0.6%, while the Dow Jones Industrial Average rose)^ DJI) by 0.8%. Nasdaq Technology Heavy Composite (^ ixIt rose by 0.7% during the afternoon trade.

US Treasury yields fell. The yield on the 10-year US Treasury fell to 3.4% from 3.5% Thursday morning. The dollar index fell 0.51 percent to $102.66.

The moves came next Show data from the Bureau of Labor Statistics Prices in December decreased by 0.1% compared to the previous month but increased by 6.5% compared to the previous year. That was in line with expectations, as inflation eased year-on-year 7.1% a month ago.

Core CPI, excluding the volatile food and energy components, prices increased 5.7% year-on-year and 0.3% from the previous month. the Basic CPI reading It came in line as expected by Bloomberg economists’ forecasts.

The report will factor heavily into the Fed’s next monetary policy meeting, which begins on January 31. Central bankers have made it clear that they are not done raising interest rates. Federal Reserve Chairman Jerome Powell stressed on Tuesday The importance of stabilizing inflation, which may lead the central bank to take the necessary measures, even if they are not common.

On Wednesday, Boston Fed Leader Susan Collins A Interest rate of 0.25 pips Increase at the next meeting of the Central Bank. Echoing those comments, Philadelphia Fed President Patrick Harker He said on Thursday He believes that the interest rate increase should be 25 basis points “in the future”.

Fed policymakers took an aggressive path that included four consecutive three-quarter point adjustments. The Fed slowed down interest rate moves by half a point in December, but some market strategists say the new inflation data gives no indication as to whether or not the central bank will make changes to interest rate decisions.

After much hype and focus on today’s CPI report, The release is a bit disappointingSeema Shah, chief global strategist at Principal Asset Management, wrote in a statement following the inflation data.

“Not only are the numbers not quite in line with consensus expectations, but they don’t really clarify the 25 basis point versus 50 basis point question for the Fed meeting in February and add nothing to the Fed’s pivot in late 2023 either debate.”

Elsewhere, Initial Jobless Claims in the first week of 2023 came in lower at 205,000 compared to forecasts at 215,000, while continuing jobless claims also fell to 1.63M compared to the previous week’s 1.694M.

In the market moves, Disney shares (dis) rose 2.3% as the media giant faces an upcoming proxy battle as shareholders voted against Activist investor Nelson Peltz In his efforts to win a place on the company’s board of directors.

KB main stakes (KBH) fell by nearly 5% after the homebuilder reported a loss in revenue and profits Net orders decreased And I dealt with a huge backlog of homes.

American Airlines (AALShares rose 5% after the carrier raised its prices Earnings tips for the fourth quarter. The company expects adjusted earnings per share of $1.12 to $1.17, up from a previous estimate of $0.50 to $0.70. It comes after a crash on Wednesday of the Federal Aviation Administration’s system turned into a nationwide standoff at US airports.

Investors continue to monitor shares of beleaguered retailer Bed Bath & Beyond (BBBY) With the increasing stakes of bankruptcy. The meme stock is up 200% this week.

Danny Romero, Yahoo Finance correspondent. Follow her on Twitter @tweet

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