Investing.com - The S&P/ASX 200 is expected to open on an upbeat note on Thursday after US indices rallied to record highs as US inflation figures ignited hopes of a Federal Reserve rate cut later this year. The optimistic data pushed bond yields lower and prompted rallies in Gold and Bitcoin.
ASX 200 Futures signaled a 0.6% increase to 7843.5. The close of trading in New York saw the S&P 500 surge by 1.2% to a record close of 5308.15, while the NASDAQ Composite increased by 1.4%. The VIX, a measure of market volatility, dropped to its lowest level since December.
The yield on the US 10-year Treasury note plummeted by 10 basis points to 4.34% in the wake of the release of the core consumer price index. This index, which excludes food and energy costs, rose by 0.3% from March, while the yearly measure recorded the slowest growth in three years.
After the closing bell, Cisco Systems Inc (NASDAQ:CSCO) provided an optimistic sales and profit forecast for the current quarter, which led to a more than 5% increase in its shares during after-hours trading.
However, it was a challenging day for meme stocks. GameStop Corp (NYSE:GME), the popular video game retailer, saw its shares fall by 19%, marking the most significant decline since 2021. AMC Entertainment Holdings Inc (NYSE:AMC), the struggling movie theatre chain, experienced a 20% drop in share price after the company leveraged its recent equity rally to reduce its debt through a private deal, as reported by Bloomberg.
In local news, earnings reports are expected from Aristocrat Leisure Ltd (ASX:ALL), Graincorp Ltd (ASX:GNC), and Incitec Pivot Ltd (ASX:IPL). Additionally, Atlas Arteria (ASX:ALX) is scheduled to host an Annual General Meeting.