Traders work on the floor of the New York Stock Exchange on January 10, 2025 in New York.
Spencer Platt | Getty Images
Stock futures rose Tuesday morning as investors prepared for the first of two inflation figures expected this week.
Futures contracts linked to Dow Jones Industrial Average gained 90 points, or about 0.21%. S&P 500 Futures Contracts advanced by 0.34%, while Nasdaq 100 Futures rose 0.5%.
The action takes place after the Nasdaq Composite slipped for the fourth consecutive day in the regular session. Traders have been pulling out of big tech names like Nvidiawhich slipped nearly 2%, and bought back stocks in the energy, healthcare and materials sectors. Stock of 30 Dow rose nearly 0.9% as traders bought Chevron And UnitedHealth.
As for Tuesday, the Producer Price Index, which measures wholesale inflation, is scheduled to be released at 8:30 a.m. ET. Economists surveyed by Dow Jones predict that the overall PPI rose 0.4%, while the core figure, which excludes food and energy, rose 0.3%.
December’s PPI measure – and the Consumer Price Index report due Wednesday – will be market catalysts as investors grapple with last week’s blowout jobs report. Upcoming inflation reports will inform the Federal Reserve’s next interest rate policy decision.
“In the short term, the market has returned to a good news-is-bad-news environment,” said Adam Turnquist, chief technical strategist at LPL Financial. “However, it is important to keep in mind that in the long term, good economic news is generally good for equity markets because it implies better-than-expected growth, rising earnings potential and reduced recession risk. “
Fed funds futures trading suggests a virtual certainty that the Fed will keep interest rates unchanged after its two-day meeting later this month. Market pricing also suggests there is an 80% chance that rates will remain within their current target range of 4.25% to 4.5% in March, according to the CME FedWatch tool.
On the earnings front, banking giants will kick off fourth-quarter earnings season this week, with JPMorgan Chase, Citi Group, Goldman Sachs And Wells Fargo publication of results on Wednesday. Morgan Stanley And Bank of America are expected to submit their report on Thursday.
