U.S. stock futures rose slightly on Tuesday evening as investors awaited key Consumer Price Index (CPI) inflation data and major bank earnings set for Wednesday. Futures saw muted gains following a volatile session on Wall Street, where softer-than-expected Producer Price Index (PPI) data offered limited relief amid ongoing concerns about the Federal Reserve’s hawkish stance on interest rates.
S&P 500, Nasdaq 100, and Dow Jones futures each edged up 0.1%. Tesla’s stock fell 0.4% after the SEC sued CEO Elon Musk over undisclosed stake purchases in Twitter. Markets are focused on the CPI data, expected at 08:30 ET, which could influence the Fed’s plans for interest rates. Persistently high inflation may prompt slower rate cuts in 2025, pressuring risk-driven assets.
While December’s PPI data showed some softening, broader inflation indicators, including the Fed’s preferred PCE index due later this month, remain high. Markets are also wary of incoming President Donald Trump’s trade tariff plans, which could stoke inflation and sustain elevated rates. A Bloomberg report hinted at a staggered tariff approach by Trump’s team.
Wall Street had a mixed session on Tuesday, with the S&P 500 up 0.1%, the Nasdaq Composite down 0.2%, and the Dow Jones gaining 0.5%. Technology stocks remained weak, and indexes are nursing a soft start to 2025 after a late-2024 decline from record highs. Key earnings from JPMorgan, Wells Fargo, Goldman Sachs, and Citigroup are expected Wednesday, adding to the cautious sentiment.
