Traders work on the floor of the New York Stock Exchange during morning trading on April 29, 2024 in New York City.
Michael M. Santiago | Getty Images
Stock futures were little changed as Wall Street braced for April’s consumer price index.
Futures tied to the Dow Jones Industrial Average rose 5 points, while S&P 500 futures and Nasdaq 100 futures remained roughly flat.
Bootburn fell 7% after disappointing full-year forecasts, while NextTracker rose 8% after better-than-expected earnings.
The overnight move followed a winning session that pushed the Nasdaq Composite Index up 0.75% and set a new record closing price. The S&P 500 rose 0.48%, while the composite index fell about 0.1% from its all-time high close. The Dow Jones Industrial Average rose 0.32%.
Investors are awaiting Wednesday’s key inflation report for further insight into the sticky inflation picture. Economists polled by Dow Jones expect the consumer price index to rise 0.4% from last month, or 0.3% excluding food and energy. Economists expect headline CPI to rise 3.4% year-on-year, following a 3.5% rise in March.
Low prices have remained a key market concern in recent weeks, raising concerns that the U.S. Federal Reserve will delay its rate-cutting cycle. The April producer price index released Tuesday showed a 0.5% rise in wholesale prices, beating the Dow Jones estimate of 0.3% and contributing to the rise.
Signs that inflation is easing on other fronts, such as home and auto insurance, could bode well for markets and Fed policy going forward, said Tom Lee of Fundstrat Global Advisors. .
“Inflation is now normalizing, the economy is in good shape, and interest rates are so restrictive that the Fed actually needs to cut rates,” the research director said Tuesday on CNBC’s “Closing Bell.” “It will be clear to the market.” . “This is actually pretty good for stocks. If it’s a pause, it’s good for stocks. If it’s a rate cut, I think it’s even better.”
Other economic reports released Wednesday include April retail sales, May Empire State manufacturing statistics and housing market index.
The final stretch of Q1 earnings season continues with Cisco Systems’ earnings announcements after the bell.
