U.S. stock futures were largely higher early Tuesday as traders awaited a pivotal consumer inflation report.
U.S. stock futures climbed early Tuesday as traders awaited a pivotal consumer inflation report. S&P 500 futures added 0.16%, while futures tied to the Dow Jones Industrial Average rose 197 points, or 0.38%. Nasdaq-100 futures were little changed.
Markets bounced back from a volatile stretch. The Dow Industrials surged 1,104 points, or 2.2%, during the prior regular trading session, whereas the S&P 500 jumped roughly 2.4%. The Nasdaq Composite rose 2.7%. The market recovery on Monday followed an unstable week wherein investors worried about a potential deceleration in data center construction after the Democratic Party secured major wins in the midterm elections.
The semiconductor space also contended with wider competitive pressures. Earlier in the week, tech stocks dropped following reports of advances in chip design by China’s CXMT, which raised concerns about intensifying competition in the semiconductor industry.
Investors turned their attention toward the October consumer price index report scheduled for Tuesday. Headline CPI is expected by Dow Jones-surveyed economists to increase by 0.3%, with core CPI—which leaves out volatile energy and food prices—projected to advance 0.2% month over month. Compared to September’s figures, in which headline CPI advanced 0.6% and core CPI went up 0.3%, this would represent a slowdown.
We think the slowdown in core CPI will stem from a reversion of shelter prices, primarily owners’ equivalent rents and lodging away from home,
wrote Christopher Hodge, chief economist of the U.S. at Natixis CIB Americas. Similarly, the stabilization in diesel prices should help to quell price pressures in energy-intensive goods.
Because of the 2025 government shutdown, annual metrics will be omitted from Tuesday’s release. Due to the Bureau of Labor Statistics’ inability to gather certain metrics during that period, a corresponding index figure is unavailable.
Overseas markets posted gains on Tuesday. South Korea’s Kospi surged 4.3%, Japan’s Nikkei 225 added 2.89%, Hong Kong’s Hang Seng Index rose 0.42%, mainland’s CSI 300 added 0.26%, and Australia’s S&P/ASX 200 gained 1.27%.
Oil prices also fell on Monday, lending the market support. The U.S. West Texas Intermediate futures settled down more than 4%, while Brent crude futures slid more than 5%.
Earlier coverage: US Stock Futures Struggle as Midterm Election Uncertainty Weighs on Markets
