Top Movers

Inflation Optimism Fuels Futures: S&P 500, Nasdaq Surge


By Bill Bullington

5/15, 08:41 EDT
Dynatrace, Inc.
Alphabet Inc.
Exxon Mobil Corporation

Key Takeaway

  • Optimism from favorable inflation data hints at potential Fed rate cuts, driving S&P 500 futures up by 0.6% and Nasdaq 100 futures by 0.7%.
  • Significant pre-market movements include Arcutis Biotherapeutics (ARQT) surging 20%, while Bolt Biotherapeutics (BOLT) and Dlocal (DLO) plummet by 30% and 27%, respectively, due to operational challenges.

Inflation Data Sparks Optimism

The latest inflation figures have injected a dose of optimism into the stock market, hinting at potential interest rate cuts by the Federal Reserve. This anticipation has propelled S&P 500 futures up by 0.6%, with Nasdaq 100 futures not far behind, marking a 0.7% increase. This upward trend extends to the Dow Jones Industrial Average futures, which have seen a 0.5% rise. The global market sentiment is similarly buoyant, with the MSCI World index climbing to a record high of 0.4%.

Notable Stock Movements

In the pre-market trading arena, several stocks have made significant moves. Arcutis Biotherapeutics (ARQT) stands out with a 20% surge, buoyed by first-quarter sales that surpassed expectations. On the flip side, Bolt Biotherapeutics (BOLT) faces a steep 30% decline after halting the development of its leading asset, coupled with a workforce reduction of about 50%. Dlocal (DLO) also finds itself in a precarious position, slumping 27% due to first-quarter net income falling short of analyst expectations, primarily due to FX challenges in Argentina.

Tech and Energy Sector Highlights

The technology sector presents a mixed bag, with Dynatrace (DT) enjoying a 4.5% uptick after reporting fourth-quarter results that exceeded forecasts and announcing a buyback plan. Meanwhile, Alphabet (GOOGL) sees a marginal 0.1% dip despite positive analyst sentiments following its I/O developer conference. In the energy sector, Exxon Mobil (XOM) gains a modest 0.2% as Morgan Stanley resumes coverage with an overweight recommendation, following the completion of the Pioneer Natural Resources acquisition.