Traders on the floor of the New York Stock Exchange are gearing up for a potentially pivotal day as stock futures rose slightly early Tuesday ahead of a key inflation report that could impact the Federal Reserve’s monetary policy.
Futures on the Dow Jones Industrial Average gained 54 points, or 0.14%, while S&P 500 futures inched up 0.38% and Nasdaq 100 futures gained about 0.63%. All eyes are on the February reading of the consumer price index, set to be released at 8:30 a.m. ET. Economists are forecasting a monthly gain of 0.4% and a 3.1% increase on the headline.
The market is still reeling from the uptick in January’s CPI figure, which led to a more cautious tone from Fed officials about easing policy. Market pricing currently indicates that the Fed is unlikely to cut interest rates at its upcoming meetings in March and April.
Chief economist Bill Adams predicts that the CPI index likely ran hot in February due to higher gasoline prices, but core inflation likely slowed as car prices fell and rent increases moderated.
The recent technology-led market rally has lost momentum, with some of the biggest winners of the year experiencing pullbacks. Nvidia, Apple, Alphabet, Microsoft, and Tesla have all seen declines in the past month.
Nationwide’s chief of investment research, Mark Hackett, suggests that as the market broadens beyond mega-cap tech names, investors can expect to see more consolidation and modest returns in the high-level market-based indexes.
With all these factors at play, traders are bracing for a potentially volatile day on the floor of the New York Stock Exchange as they await the release of the crucial inflation report.
