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The Nasdaq 100 is pushing 1% higher in pre-market as markets are encouraged by signs of China easing its restrictions and helping its struggling property sector. Traders are also constructive on markets ahead of PPI being released before market open. It is expected to increase by 0.4% month-over-month for October, the same as last month. Both Walmart and Home Depot are scheduled to release earnings in pre-market. Investors will look for clues on the state of consumer spending and how are the big box retailers' margins holding up amid inflation.

The Nasdaq 100 is gaining almost 1% in pre-market, on continued positive momentum following its surge of more than 7% on Thursday. Investors are rapidly re-pricing lower tightening expectations of the Federal Reserve. The dollar weakness and lower Treasury yields are particularly boosting the valuations of those demanding high PE ratios stocks such as semiconductors (SMH ETF, up 10% on Thursday), and areas such as e-commerce with Amazon up 12%. Investors will likely continue to digest the new reality of US CPI falling to 0.3% month-over-month, versus 0.5% expected, and 0.6% from the month prior (a 50% drop in the inflation rate). On Friday afternoon we will be watching the Michigan sentiment index for signs of the state of economic momentum. 

Bitcoin fell to as low as USD17'484, the lowest level since Nov. 2020, after Binance, the world's largest crypto exchange, said it had signed a letter of intent to acquire the non-US assets of rival FTX, which faces a "significant liquidity crunch." Many crypto-related stocks such as Robinhood, Silvergate, and Coinbase fell as investor confidence in crypto took a hit. 

S&P 500 futures advanced, encouraged by the possibility that investor risk appetitive may become more supportive post the midterm elections. Markets are also gaining momentum following remors that Meta is preparing to lay off thousands of employees in an attempt to rapidly cut costs as advertisers reduce budgets and investors lose patience with the billions of dollars lost on the metaverse R&D. Investors are nonetheless nervous ahead of the US CPI data on Thursday and climbing US treasury yields. 

US stock futures are slightly higher as investors are warming up to the prospects of the Republicans taking both a majority in the House and the Senate. Considering one of the largest objectives of this political party is to fix the current issues regarding the state of the US economy, there are reasons to be slightly more optimistic, after the strong selloff in markets last week.