US stock futures edged higher on Tuesday morning ahead of a much-anticipated inflation print.
Futures contracts tied to the S&P 500 (^GSPC) rose at least 0.4% in premarket trading, while futures on the Dow Jones Industrial Average (^DJI) 0.5% increase. The tech-heavy Nasdaq Composite (^IXIC) increased by 0.4%.
Stocks rallied on Monday as investors expected softer inflation and a easing in the pace of Fed rate hikes following the central bank’s final policy meeting of the year. The S&P 500 rose 1.43% to kick off the week, with energy, utilities and technology outperforming.
The yield on the 10-year US Treasury note fell to 3.59% from 3.617% on Monday. According to Bespoke Investment Group, the upside move to real yields is still modest, but it is unrelated to the 1% gain seen on Monday from the overall stock market.
US consumer price index read is by Tuesday ahead of the Fed meeting, where officials are expected to raise rates by 50 basis points on Wednesday, slowing from the 0.75% increase in the previous four meetings.
Economists surveyed by Bloomberg estimate the headline CPI will rise 0.3% for the second straight month, with the annual CPI falling from 7.7% to 7.3%. Core CPI, which excludes volatile food and energy components, is forecast to rise 6.1% year-on-year, slightly below October’s 6.3%.
“Indeed, we don’t have as many important dates as the next two, and the US CPI today and the FOMC tomorrow could be the difference between a big Santa rally and a visit by Santa Claus. Scrooge before Christmas,” wrote Jim Reid and colleagues at Deutsche Bank in an early Tuesday morning note.
In commodity markets, oil prices were higher, with WTI crude oil futures rising 0.5% to $73.58 a barrel, as China eased COVID-related restrictions.
On the corporate news front, United Airlines (UAL) ordered 100 of Boeing’s most advanced 787s Dreamliners with options to purchase 100 more, follow a press release. Shares of United Airlines fell 1% on the pre-opening news.
Elsewhere, in the crypto world, Sam Bankman-Fried, founder and former CEO of the bankrupt crypto exchange FTX, was arrested on monday in the Bahamas after the US filed a criminal complaint.
Separately, Bankman-Fried has been charged by the Securities and Exchange Commission with defrauding investors. Bitcoin (BTC-USD) was trading at $17,000, while Ethereum (ETH-USD) rose 2.6% to nearly $1,300.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniroromerotv
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