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Wall Street's main indexes snapped a two-week winning streak
last week, weighed down by fears of a potential recession next
year due to extended central bank rate hikes. The Nasdaq shed
4%, and S&P 500 and Dow Jones Industrial Average lost 3.4% and
2.8%, respectively.
Consumer inflation data due on Tuesday is expected to show
prices rose 7.3% in November on an annual basis, easing from the
7.7% rise in the previous month, while the core rate, which
excludes volatile food and energy prices, is expected to have
moderated to 6.1% from 6.3% in October.
The data will come on the heels of November's slightly
higher-than-expected producer price reading on Friday, amid a
jump in the costs of services, but the trend is moderating, with
annual inflation at the factory gate posting its smallest
increase in 1-1/2 years.
The outcome for the U.S. central bank's two-day meeting is
scheduled for Wednesday, with money market participants seeing a
91% chance of a 50-basis-point rate hike to 4.25%-4.50%, with
the rates peaking in May 2023 to 4.96%.
Treasury Secretary Janet Yellen on Sunday forecast a substantial
reduction in U.S. price pressure in 2023, while also
acknowledging a risk of recession.
"With markets pricing two-way risk on the Fed's hiking
trajectory, we've seen more volatile trading in response to data
points that support either narrative," said Mark Haefele, chief
investment officer, UBS Global Wealth Management.
"But on balance, we think there's still far too much uncertainty
for investors to assume a risk-on position just yet."
At 6:10 a.m. ET, Dow e-minis were up 73 points, or 0.22%, S&P
500 e-minis were up 11.25 points, or 0.29%, and Nasdaq 100
e-minis were up 39.25 points, or 0.34%.
Most rate-sensitive stocks including Apple Inc, Amazon.com Inc
and Alphabet Inc gained between 0.4% and 0.5% in premarket
trading.
Biotech firm Horizon Therapeutics Plc jumped 14.1% following a
buyout offer from Amgen Inc, while Coupa Softwre Inc surged
22.4% on a media report of Thoma Bravo LLC being in advanced
talks for an acquisition.
Rivian Automotive Inc tumbled 4.3% after the company paused its
partnership discussions with Mercedes-Benz Vans on electric van
production in Europe.
(Reporting by Shubham Batra and Ankika Biswas in Bengaluru;
Editing by Vinay Dwivedi)
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