Futures extend gains as data shows moderate rise in May inflation

(Reuters) – U.S. stock index futures extended gains on Tuesday after data showed U.S. consumer prices rose moderately in May, bolstering hopes that the Federal Reserve could keep interest rates unchanged on Wednesday.

The Labor Department’s Consumer Price Index (CPI) headline and core inflation in May rose 0.1% and 0.4%, respectively, on a month-on-month basis. Economists polled by Reuters were expecting a rise of 0.2% and 0.4%, respectively.

On a year-on-year basis, the headline inflation jumped 4%, against expectations of a 4.1% rise, while core prices increased 5.3%, in line with expectations.

Traders bets rose for a pause in interest rate hike this week after the data.

At 8:33 a.m. ET, were up 24 points, or 0.07%, were up 11.25 points, or 0.26%, and were up 89.75 points, or 0.61%.