US index futures rise on September rate cut hopes after CPI inflation eases

The optimism follows July’s Consumer Price Index reading that shows inflation at 2.7 percent on-year - below forecast - suggesting price pressures may be easing, which has heightened expectations that the Fed will act.

Moneycontrol News

August 13, 2025 / 17:38 IST

US Futures rise on rate-cut hopes as inflation eases

US index futures were higher on August 13 as investors grew more confident that the Federal Reserve may lower interest rates as early as next month following lower-than-expected inflation data.

In early US trading, Nasdaq-100 E-mini futures were up by 0.23 percent while S&P 500 futures rose roughly 0.18 percent, a short while ago. Dow Jones futures moved higher to rise by 0.3 percent shortly before opening bell. The optimism follows July’s Consumer Price Index reading that shows inflation at 2.7 percent on-year - below forecast - suggesting price pressures may be easing, which has heightened expectations that the Fed will act.

According to a poll, there is now a 98 percent probability of a 25 bps rate cut in September - up from 88.8 percent just a day earlier. Some institutions, like UBS, are forecasting as much as a full percentage point of easing starting next month.

Investor confidence seemed to return, as measured by the CBOE Volatility Index (VIX), which fell to levels not seen since January. A steeper yield curve also buoyed banking shares, as rising differences between long and short-term interest rates often benefit lenders.

Meanwhile, shares of CoreWeave - an AI-cloud services firm - dropped significantly after the company reported a larger-than-expected loss and flagged increased capital spending. In contrast, energy company Venture Global jumped nearly 9 percent after winning a favourable court ruling.