US Stock Futures Rise as CPI Eases Rate-Hike Fears

US stock futures increased on Wednesday following a cooler-than-expected Consumer Price Index (CPI) report, which eased concerns about further interest rate hikes by the Federal Reserve. The inflation data showed a 3.4% annual increase in CPI for April, a slight deceleration from the 3.5% recorded in March, and a 0.3% month-over-month rise, down from 0.4% in the previous month. Core CPI, excluding volatile food and energy prices, also saw a moderation, rising 0.3% monthly and 3.6% annually, both below economists' forecasts. This inflation relief contributed to a rise in Treasury yields, with the 10-year Treasury yield falling to 4.35%. In other markets, oil prices remained stable as a swift de-escalation of tensions between the US and Iran, following renewed American strikes, averted significant supply disruptions. The S&P 500 futures gained 0.5%, Dow Jones Industrial Average futures rose 0.4%, and Nasdaq 100 futures climbed 0.7%. Investors are now looking ahead to the Federal Reserve's next policy meeting in June, with market participants pricing in a lower probability of a rate hike and a higher likelihood of rate cuts later in the year.