Futures tied to the Dow Jones industrial average added 152 points, or 0.5%. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.7%. China has lifted some Covid restrictions, including reducing the quarantine time for international travelers by two days, state media said on Friday. The news built on a rally that came after the Bureau of Labor Statistics reported a smaller-than-expected increase in consumer prices for the month of October, giving investors hope that inflation may ease. U.S. Treasury yields fell after the data, while tech stocks soared. The major averages on Thursday posted their biggest one-day rally since 2020. The Dow jumped more than 1,200 points. The S&P rose 5.5% and the Nasdaq Composite rose about 7.4%. All indicators are on pace for a winning week. The Dow is up 4% for the week, while the S&P and Nasdaq are up 4.9% and 6.1%, respectively. The three moving averages are also on track for a positive month. “Markets are broadly upbeat after this morning’s cooler CPI… But today’s CPI report, while showing that inflation is moving in the right direction, does not suggest that inflation has been uprooted from the broader economy,” he said. Quincy Crosby, head. global strategist for LPL Financial. “And it doesn’t suggest that the Fed’s job of restoring price stability is done.” October’s CPI rose 0.4% for the month and 7.7% from last year. The corresponding Dow Jones estimates were for gains of 0.6% and 7.9%. Investors are eagerly awaiting the University of Michigan’s preliminary consumer sentiment data, due at 10 a.m. ET.
