Traders work on the floor of the New York Stock Exchange during afternoon trading on April 9, 2024 in New York City.
Miguel M. Santiago | fake images
Stock futures rose marginally Wednesday morning as investors await key U.S. inflation data that will inform the direction of the Federal Reserve's rate policy.
Futures tied to the Dow Jones Industrial Average added 23 points, or 0.06%. S&P 500 Futures traded up 0.07%, while Nasdaq 100 Futures rose 0.12%.
During regular trading on Tuesday, investors appeared to be in a holding pattern ahead of the March Consumer Price Index report. The action of 30 Dow fell 0.02%, while the S&P 500 gained 0.1%. He Nasdaq Composite rose 0.3%.
He CPI report, which will be released Wednesday at 8:30 a.m. ET, is estimated to have risen 0.3% in March month over month and 3.4% from 12 months earlier, according to economists surveyed by Dow Jones. Economists expect the core CPI, which excludes volatile food and energy prices, to rise 0.3% and 3.7%, respectively.
Traders are watching the CPI data for clues on how central bank policymakers may proceed with regards to interest rates, and the outcome is sure to affect Wednesday's market moves. Fed funds futures trading data suggests a 42% chance the central bank will keep rates steady in June, according to the CME FedWatch Tool.
A higher-than-expected inflation reading could trigger a major pullback after the market's rally this year, while a colder reading could cause Treasury yields to retreat and lift the stock market, according to Quincy Krosby, LPL chief global strategist. Financial.
"The market is increasingly concerned that inflation will remain more persistent, or perhaps even stuck on its downward trajectory," Krosby said. "There is a smell of stagflation hanging over the markets if the Fed goes ahead with starting the easing cycle without inflation accelerating its downward trajectory."
In addition to Wednesday's big inflation report, investors are also looking forward to the minutes of last month's Federal Reserve meeting. They will be looking for clues about where the authorities stand on the rate cuts expected this year.
First quarter earnings season is also about to begin. Delta Airlines He is scheduled to release the results on Wednesday before the bell rings.
