Stock futures inch higher after highest inflation data in decades
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, April 4, 2022.
Brendan McDermid | Reuters
Share futures were flat in overnight trading as investors weighed the latest inflation data for March.
Dow Jones Industrial Average futures were up 20 points, or 0.06%, while S&P 500 futures and Nasdaq 100 futures were both flat.
Tuesday’s inflation data showed consumer prices rose 8.5% in March year-over-year – the highest level since 1981 – adding to concerns about tighter monetary policy from the Federal Reserve. Federal Reserve. Core CPI rose 0.3%, slightly below expectations.
“I think it’s very likely that inflation has peaked,” Guggenheim Partners Global Investment Director Scott Minerd told CNBC on “Closing Bells: Working Hours” on Tuesday. “If it doesn’t peak in March, then we’re in the process of peaking.”
10-year Treasuries hit a new three-year high, topping 2.82% before pulling back to 2.727%.
After recovering earlier in the day, key averages closed Tuesday’s session in the negative. The Dow Jones Industrial Average fell 87.72 points, or 0.26%, to 34,220.36. The S&P 500 fell 0.34% to 4,397.45, and the tech-heavy Nasdaq Composite fell 0.30% to 13,371.57.
Seven sectors ended the day in negative territory led by finances. Technology also struggled, with Microsoft and Meta closing down about 1%. Nvidia fell 1.9% and Advanced Micro Devices fell 2.3%, continuing a losing streak in the semiconductor industry.
Oil prices spiked as China eased some Covid-19 lockdowns that could hit demand hard. International benchmark Brent crude oil prices rose 6.26% to $104.64 per barrel, while West Texas Intermediate crude futures rose 6.69% to $100.60 per barrel. The moves sent energy stocks up, with Marathon Oil and Occidental Petroleum ending the day up 4.2% and 2.1%, respectively.
Meanwhile, the dollar index gained 0.39% and hit a high of 100.332, the highest since May 2020. Gold also gained 1.43% and settled at $1,976.1.
Investors are looking forward to earnings season kicking off Wednesday, starting with JPMorgan and Delta Airlines.