Futures climb as investors eye inflation data, quarterly earnings

(Reuters) – U.S. stock index futures rose on Tuesday, supported by falling Treasury yields as investors awaited December’s inflation numbers as well as upcoming corporate earnings to assess the health of the world’s largest economy.

At 05:32 a.m. ET, Dow E-minis were up 142 points, or 0.33%, E-minis were up 28.25 points, or 0.48%, and E-minis were up 137 points, or 0.65%.

Producer Price Index data, due at 8:30 a.m. ET, will be the first of two reports due this week that could offer clues on the state of inflation in the United States.

Economists polled by Reuters forecast the index to have risen to 3.4% in December, from 3% the previous month. Among components that feed into the Personal Expenditure index, the U.S. Federal Reserve’s preferred inflation gauge, the focus will be on healthcare services, portfolio management fees and airfares.

Excluding volatile items such as food and energy, the PPI index is expected to have risen to 3.8% in December. The Consumer Price Index data is due on Wednesday.

Quarterly reports from big banks are also highly anticipated later this week, with the lenders expected to report stronger earnings, fueled by robust dealmaking and trading.

JPMorgan Chase & Co (NYSE:) added 0.6%, Morgan Stanley (NYSE:) rose 0.8% and Citigroup (NYSE:) climbed 0.7% in premarket trading.

Wall Street’s main indexes have been on a downward trajectory since early December, with the price-weighted Dow down more than 6% from its record high hit last month, and the benchmark S&P 500 at a two-month low.

The central bank’s cautious stance on monetary policy easing this year, along with subsequent batches of upbeat economic data, raised investor concerns that inflation might be running high.

U.S. President-elect Donald Trump is expected to take office on Jan. 20 and his policy proposals on tariffs and immigration are widely expected to fuel inflation.

Yields on longer-dated Treasury bonds dipped on Tuesday, but are near their highest levels since late 2023. Analysts also pointed to a report that said the incoming administration was considering gradual tariff hikes, giving the U.S. negotiating leverage.

Traders have pared back expectations for a Fed rate cut in 2025, according to data compiled by LSEG, and now see the central bank lowering interest rates by about 27.5 basis points by the year end.

Comments from Kansas City Fed President Jeffrey Schmid and New York Fed President John Williams, who are voting members on the Federal Open Market Committee, will be scrutinized for their perspectives on monetary policy easing and the state of the economy.

Among megacaps, AI-bellwether Nvidia (NASDAQ:) rose 2.2% after logging four days of declines, on expectations that fresh U.S. export restrictions could hurt the company’s revenues, while Tesla (NASDAQ:) added 2.5%.

Crude prices dipped, with all eyes on a plan to end the geopolitical conflict in the Middle East that could provide markets with some respite.