U.S. Stock Futures Rise on Lower Oil, Easing Inflation Worries

By EC Assets · Published

U.S. stock futures rose this morning, with lower oil prices easing concerns about inflation. Treasury yields also declined, contributing to a broadly higher opening for stock index futures. This followed a late-session sell-off on Wall Street. September S&P 500 E-Mini futures (ESU26) increased by 0.90%. September Nasdaq 100 E-Mini futures (NQU26) climbed 1.09%. Federal Reserve Chairman Kevin Warsh’s stated resolve to combat inflation reassured investors. Investors weighed fresh data showing a gauge of inflation fell in June. U.S. crude prices briefly dipped below $100. Oil prices fell for a third consecutive day on hopes of increased supply from Saudi Arabia. Gold prices reached a weekly high as inflation concerns receded. Global equity fund outflows hit a nine-month high previously due to inflation fears. The Federal Reserve's recent rate hike and falling oil prices are spurring a stock market rally. Stocks and Treasuries rose as oil prices dropped, boosting hopes for controlled inflation. The Bank of Japan raised interest rates to a 31-year high, over inflation and aiming to curb rising prices. The Bank of England is expected to keep rates steady, despite U.K. inflation rising to 3.1% and energy costs pressures. Investors are focusing on the upcoming U.S. July inflation report. This report could impact interest rates. This article is intended for informational purposes only. It does not constitute investment advice.

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