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Stock futures rise ahead of inflation


US stocks wavered in midday trading, paring gains from Tuesday’s early boom as new inflation data showed. prices rose less than expected last month.

The S&P 500 Index (^GSPC) increased by 0.3%. Dow Jones Industrial Average (^DJI) fell 0.1% in midday trading, giving up a 2% increase from the beginning of the session. The tech-heavy Nasdaq Composite (^IXIC) added 0.2%.

Stocks soar after data from BLS shows price in November increased 0.1% month-on-month and 7.1% year-on-year. third data was seen by investors likely to encourage the Federal Reserve to ease back on aggressive rate hikes early next year.

“While this is the second straight month of weaker-than-expected inflation, we don’t think this will change anything at tomorrow’s Fed meeting. We still expect a 50 basis point rally, but it’s important to guide,” said Gina Bolvin, President, Bolvin Wealth Management Group, wrote in a statement following the inflation data.

Following the inflation data and the ensuing stock rally, the dollar fell against most major currencies and bitcoin (BTC-USD) rallied, up as much as 5% to reach nearly $18,000.

Yields also fell, with 10-year Treasury yields sliding as much as 16 basis points to around 3.45% early Tuesday.

Stocks rallied on Monday ahead of the inflation report, with the S&P 500 up 1.43% to kick off the week, with energy, utilities and technology dominating.

The rally continued into early Tuesday as consumer price data turned colder than expected: Economists surveyed by Bloomberg had expected the headline CPI to rise 7.3% year-over-year and zero. 3% from last month.

Meanwhile, core CPI, excluding volatile food and energy components, increased by 6.0% year-on-year, down from the 6.1% annual increase recorded in October. Data is the last piece of the puzzle ahead of the Fed’s final policy meeting in 2022, at which the central bank is expected to raise its benchmark interest rate by 0.50%.

“Indeed, we don’t have as many important dates as the next two, and the US CPI today and the FOMC tomorrow could be the difference between a big Santa rally and a visit by Santa Claus. Scrooge before Christmas,” wrote Jim Reid and colleagues at Deutsche Bank in an early Tuesday morning note.

In commodity markets, oil prices were higher, with WTI crude rising more than 3% to around $75.76 a barrel, as China eased COVID-related restrictions.

On the corporate news front, United Airlines (UAL) ordered 100 of Boeing’s most advanced 787s Dreamliners with options to purchase 100 more, follow a press release. Shares of United Airlines fell nearly 7% following the news.

Elsewhere, in the crypto world, Sam Bankman-Fried, founder and former CEO of the bankrupt crypto exchange FTX, was arrested on monday in the Bahamas after the US filed a criminal complaint.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniroromerotv

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