US stock futures held onto gains on Tuesday after key inflation data came in hotter than expected, setting the stage for potential Federal Reserve interest-rate cuts.
S&P 500 futures were up 0.2%, while Nasdaq 100 futures were 0.4% higher, following two days of losses. Dow Jones Industrial Average futures remained relatively unchanged.
Investors are analyzing the Consumer Price Index release, a crucial factor for the Fed in determining its next policy move. Headline inflation met expectations with a 0.4% monthly gain in February, while “core” CPI, which excludes food and energy prices, rose by 0.4% on the month and 3.1% on the year, surpassing estimates.
The CPI data is significant as Fed policymakers have indicated they want to ensure inflation is decreasing before considering lowering rates from their current high levels. Prior to the CPI release, S&P 500 traders were hedging moves of 0.9% in either direction for stocks.
In the cryptocurrency market, bitcoin continued its record-setting rally, reaching $72,240. Increased inflows into crypto assets have propelled bitcoin to a nearly 70% gain this year, with some predicting it could reach as high as $350,000 in 2024.
On the corporate front, Oracle shares surged 13% in premarket trading due to signs of progress in cloud computing, including a partnership with AI chip giant Nvidia.
In other news, US consumer prices remained elevated in February, with the CPI rising 0.4% over the previous month and 3.2% over the prior year. Apple’s stock has been underperforming, with concerns over AI plans, China demand, and regulatory issues contributing to the recent sell-off.
Overall, the market remains active and responsive to economic data and corporate developments, shaping expectations for future market movements.
