US Stock Futures Surge on Weaker Inflation Data

US stock futures rose on Wednesday as softer-than-expected inflation data boosted hopes that the Federal Reserve might not raise interest rates next month.

The Commerce Department reported that the Personal Consumption Expenditures (PCE) price index came in at 3.4% annualized in August, lower than the estimated 3.7%. This led to a decline in the probability of an October rate hike from around 45% to about 35%, according to data compiled by LSEG.

The US economy grew solidly in the second quarter, driven by robust consumer spending and business investment related to AI infrastructure. This bullish trend was echoed by Sam Stovall, chief investment strategist at CFRA Research, who noted that the market had been tracing out a bullish formation.