Stock futures were cautiously higher Tuesday morning as investors waited for Tuesday’s consumer price index report, an important inflation data point ahead of the Federal Reserve’s September meeting.
Dow Jones Industrial Average futures were up 90 points, or 0.28%. S&P 500 futures were up 0.34% and Nasdaq 100 futures gained 0.33%.
U.S. stocks rose Monday, continuing a relief rally that began last week when all three major averages snapped three-week slumps. The Dow Jones Industrial Average gained nearly 230 points, or 0.7%. The S&P 500 rose close to 1.1%, and the Nasdaq Composite added about 1.3%.
Investors’ confidence has been bolstered by the belief that inflation has already peaked. A weaker dollar and military success in Ukraine also supported stocks.
On Tuesday, all eyes will be on the August CPI report, which is expected to show a 0.1% decrease in headline inflation on a monthly basis, according to estimates from Dow Jones. The report is one of the last the Fed will see ahead of their Sept. 20-21 meeting, where they’re expected to deliver their third consecutive 0.75 percentage point interest rate hike to tamp down inflation.
“The durability of the rally will likely be determined by Tuesday’s CPI report this week and the tone of the FOMC meeting next week,” said Mark Hackett, chief of investment research at Nationwide.
Wall Street will also be weighing the NFIB small business survey due Tuesday, the producer price index on Wednesday and retail sales data to be released Thursday.