Inflation Surprises: Cooler CPI Reading Boosts Rate Cut Hopes

U.S. stock index futures saw reduced losses after a surprisingly lower inflation report suggested the Federal Reserve might cut interest rates in 2023. The Commerce Department revealed a slower consumer price index rise than anticipated, while jobless claims met expectations.

U.S. stock index futures trimmed their initial losses on Thursday after new inflation data suggested a possible interest rate cut by the Federal Reserve this year. The Commerce Department reported that the consumer price index increased by 2.4% annually in March, below the predicted 2.6% rise.

Core CPI, which excludes food and energy, rose by 2.8% on an annual basis, a notch below the anticipated 3%. Meanwhile, the Labor Department reported that 223,000 new unemployment claims were filed, matching economists' expectations.

By 08:31 a.m. ET, Dow E-minis were down by 432 points, or 1.06%, while S&P 500 E-minis saw a decrease of 79.25 points, or 1.44%, and Nasdaq 100 E-minis dropped 349 points, or 1.81%.

(With inputs from agencies.)