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U.S. equity futures moved higher in early Tuesday trading, helped in part by a pullback in Treasury bond yields, as investors looked to a series of key inflation and consumer spending releases following last week’s global market turmoil.
Stocks ended mixed last night, with the merest of gains for the S&P 500, as markets regrouped from last week historic volatility surge and shifted focus to the line-up of inflation readings over the coming days that could cement the case for a Federal Reserve rate cut next month in Washington.
The Commerce Department will publish factory gate inflation figures at 8:30 am Eastern time this morning, with a key reading of consumer price inflation expected at the same time tomorrow.
Wall Street will be focused on a series of inflation and consumer spending data releases this week as attention shifts to next month’s Federal Reserve rate meeting.
Traders remain split on the size of next month’s likely cut, but have effectively locked-in the first Fed rate reduction since the 2020 pandemic. The current Fed Funds rates sits a a 23-year high of between 5.25% and 5.5%.
Related: Bank of America’s CEO flags a big Fed risk
Benchmark 10-year Treasury bond yield eased to 3.923% in overnight trading ahead of today’s PPI inflation release, while 2-year notes were last seen trading at 4.029%.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.07% higher at 103.206 heading into the start of the New York trading session.
The CBOE Group’s VIX index, meanwhile, was marked 2% lower in overnight trading and fell below the $20 mark for the first time since August 1.
On Wall Street, futures suggest a firmer open for the three major benchmarks, with the S&P 500 called 20 points higher and the Dow Jones Industrial Average priced for a 35 point advance.
The tech-focused Nasdaq, meanwhile, is looking at a 100 point gain, thanks in part to early premarket advances for Nvidia (NVDA) , Tesla (TSLA) and Advanced Micro Devices (AMD) .
Home Depot (HD) shares, meanwhile, fell 2.3% in early trading after the home improvement retailer cut its full-year sales forecast following a stronger-than-expected second quarter earnings report.
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In overseas markets, Europe’s Stoxx 600 was marked 0.17% higher in Frankfurt, while Britain’s FTSE 100 slipped 0.07% in London.
Overnight in Asia the Nikkei 225 returned from yesterday’s Mountain Day holiday and rose 3.45%, erasing all of last week’s ‘carry trade’ decline, while the regional MSCI ex-Japan index rose 0.12% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
