The S&P 500, Nasdaq eye are advancing again and futures are rising ahead of PPI inflation.
U.S. stock futures were trading higher across the board on Tuesday as investors reacted to reports that the incoming Trump administration may increase tariffs.
S&P 500 futures (ES=F) rose about 0.4%, while those on the tech-heavy Nasdaq 100 (NQ=F) put up 0.5%, both recovering from Monday’s losses. Meanwhile, the Dow Jones Industrial Average Futures (YM=F) added 0.3% on a winning day for the blue-chip index.
President-elect Donald Trump’s team is considering a promised month-to-month rate hike rather than imposing one step higher to curb inflation, Bloomberg reported.
Markets are concerned that Trump’s policies could exacerbate inflationary pressures, which could limit the scope for the Federal Reserve to cut interest rates. But gradual rates could still be a “problem” for the central bank’s efforts to finish its job of cooling inflation, a UBS strategist said.
Close: January 13 at 4:46:46 PM EST
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After the tariff report, the dollar (DX-Y.NYB) retreated after five days of gains, while the 10-year Treasury yield (^TNX) retreated from a 14-month high hit on Monday’s bond selloff.
The release of December’s producer price index later in the day will confirm the temperature on wholesale inflation and set the pace for Wednesday’s much-anticipated consumer inflation print.
On the corporate front, shares of KB Home ( KBH ) jumped nearly 10% in premarket trading after the homebuilder’s fourth-quarter earnings estimates were missed.
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