Key facts
- US stock index futures extended gains following May inflation data.
- The May PCE Price index rose 0.4% month-on-month, below the 0.5% expected.
- The annual PCE Price index was 4.1%, in line with estimates.
- The core PCE reading increased 0.3% monthly and 3.4% annually, matching expectations.
- Dow, S&P 500, and Nasdaq 100 futures all saw significant gains.
U.S. stock index futures extended their gains on Thursday, buoyed by a May inflation report that largely met economists' expectations. The Commerce Department's Personal Consumption Expenditures (PCE) Price index showed a 0.4% rise for the month, slightly below the 0.5% anticipated by Reuters-polled economists, while the annual increase held steady at 4.1%, in line with estimates. The core PCE reading, which excludes volatile food and energy prices, also aligned with forecasts, increasing by 0.3% on a monthly basis and remaining at 3.4% year-on-year. This inflation data has fueled investor optimism for a less aggressive stance from the Federal Reserve. By 8:34 a.m. ET, Dow E-mini futures were up 133 points, or 0.25%. S&P 500 E-minis climbed 59.5 points, a gain of 0.8%, while Nasdaq 100 E-minis saw a more substantial increase of 679 points, or 2.3%.