US stock futures rose on Wednesday after a fresh reading on inflation showed consumer prices increased less than expected in May. The latest snapshot of inflation comes hours before a highly anticipated Federal Reserve meeting in the afternoon will provide the latest signal on the path of interest rates.
S&P 500 futures (ES=F) built on a 27th record close of the year, rising 0.7%. Futures on the tech-heavy Nasdaq 100 (NQ=F) rose nearly 0.9%, also pointing to gains after a record close for the index. Dow Jones Industrial Average futures (YM=F) gained 0.6%.
The Consumer Price Index (CPI) remained flat over the previous month and rose 3.3% over the prior year in May — a deceleration from April's 0.3% month-over-month increase and 3.4% annual gain in prices. Both measures beat economist expectations. On a "core" basis, which strips out the more volatile costs of food and gas, prices in May climbed 0.2% over the prior month and 3.4% over last year — cooler than April's data. Both measures also came in better than economist estimates.
Read more: How does the labor market affect inflation?
Meanwhile, the Fed's decision is all but certain — the central bank is expected to keep rates at their current 23-year-high levels. Investors will be more closely watching the release of the Fed's updated economic projections in its "dot plot" — specifically, how many rate cuts it projects for the rest of the year.
