Spx Futures Rise 0.8% After 4.2% Inflation Print
spx futures were up about 0.8% in morning trading after May consumer prices rose 0.5% month on month and headline inflation reached 4.2%. Nasdaq-100 minis also gained around 1.2%, showing traders were still willing to add risk even with inflation running hotter than expected.
May Inflation And Rates
The inflation report showed energy costs rising 23.5% over the year, while the 10 year Treasury yield held near 4.55%. Markets still appeared to see a Federal Reserve hike later in the year, keeping rate expectations at the center of the move.
That mix left futures pointing higher, but not across the board in the same way. Stocks tied more closely to rates, energy prices, and banks were reacting to the same data set through different channels.
Oracle And Adobe
Individual stock moves were sharp. Sandisk jumped 14.50% after multiple analysts lifted price targets on AI related demand, Coupang climbed 14.09% as a regulatory fine landed below market expectations, and KLA gained 12.92% after brokers raised price targets on wafer fab equipment demand.
Oracle fell 8.53% after mixed Q4 results and a heavier focus on future AI infrastructure spending, while Adobe dropped 6.25% after Q2 earnings and buyback updates failed to lift sentiment. The gains and losses showed how investors were still rewarding some growth stories while punishing results that did not change the outlook enough.
Monday Data Watch
Next week’s calendar added more potential market tests, starting Monday with the NY Empire State Manufacturing Index, Industrial Production MoM, and the NAHB Housing Market Index. Euro Area Industrial Production MoM and Housing Starts in Canada were also scheduled for Monday, giving traders another read on demand and housing conditions after the inflation data.
The immediate read for investors is simple: hotter inflation has not stopped buying in futures, but it has kept the market focused on how long rates stay elevated and which parts of the market can still hold up under that pressure.
