Stock futures rallied on Friday after the consumer price index for September came in cooler than expected.
The headline CPI rose at a 0.3% monthly rate and a 3% annual rate. The consensus among economists polled by FactSet called for a 0.4% monthly increase and a 3.1% annual rate. The core CPI, which excludes volatile food and energy prices, rose at a 0.3% monthly rate.
S&P 500 futures rallied 0.7% in the wake of the report. Nasdaq 100 futures jumped 1%. Dow futures rose 0.5%. Russell 2000 futures rallied 1.7%.
Bonds were also rallying on the news. The yield on the 2-year Treasury note fell to 3.44%. The 10-year yield was down to 3.97%.
