|
The
Labor Department report, due at 8:30 a.m. ET, is likely to show
that consumer price increased at a slower pace in April, cooling
to 0.2% in April from 1.2% in March.
After the 50-basis point rate hike by an increasingly hawkish
Federal Reserve, markets have gyrated wildly ahead of this
week's data, which will be closely parsed for signs that
inflation is peaking.
Recent comments from Fed officials have backed a series of
half-percentage-point rate increases, although traders see a 73%
chance that the central bank will hike by 75 basis points at the
June meeting.
"A soft inflation read will come as a relief that the Federal
Reserve's efforts to tame inflation started paying off, and that
the Fed doesn't need to get much more aggressive to bring
inflation back towards its 2% policy target," said Ipek
Ozkardeskaya, senior analyst at Swissquote Bank.
"If, however, inflation hasn't pulled lower as expected - and
worse, if we see a higher figure than last month print, we would
see another big wave of selloff across all assets."
The tech-heavy Nasdaq closed higher on Tuesday but remains close
to an 18-month low hit earlier this week after megacap growth
stocks fell sharply due to worries about rising rates denting
future cash flows.
At 06:59 a.m. ET, Dow e-minis were up 267 points, or 0.83%, S&P
500 e-minis were up 44 points, or 1.1%, and Nasdaq 100 e-minis
were up 178.5 points, or 1.45%.
Offering support to equities, U.S. Treasury yields extended
their declines from recent highs, with the yield on 10-year
notes falling below 3%. [US/]
High-growth stocks such as Tesla Inc, Amazon.com, Microsoft
Corp, Meta Platforms, Apple Inc and Google owner-Alphabet Inc
gained between 1.6% and 2% in premarket trading.
Coinbase Global Inc fell 13.9% after first-quarter revenue
missed estimates amid a turmoil in global markets which has
curbed investor appetite for risk assets.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Arun
Koyyur)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
