U.S. stock futures rose slightly in overnight trading as investors braced for a key inflation report on Tuesday.
Dow Jones Industrial Average futures gained 40 points or 0.1%, while S&P 500 and Nasdaq 100 futures edged higher.
The overnight moves come as investors await the release of the highly anticipated March consumer price index on Tuesday. The data is expected to show an annual price increase of 8.4% – the highest level since December 1981 – according to economists polled by Dow Jones, with food, rent and energy prices expected to rise as the main contributors to the outbreak.
“I think by the summer we’ll probably see the CPI inflation rate peaking and then the consumption deflator peaking at around 6-7% and then coming down to maybe 3-4% d ‘here is the second half of the year. next year,” Ed Yardeni, president of Yardeni Research, told CNBC’s “Closing Bell: Overtime” program on Monday.
In regular Monday trading, the Dow Jones Industrial Average fell 413.04 points, or 1.19%, to 34,308.08, while the S&P 500 fell 1.69% to 4,412.53. The tech-heavy Nasdaq Composite fell 2.18% to 13,411.96.
All 11 sectors ended the day in the red, with technology facing the brunt of losses as investors continued to seek stability. Microsoft fell almost 4%, while semiconductor Nvidia fell more than 5%.
Energy companies such as ConocoPhillips and Occidental Petroleum also fell as oil prices fell on fears that shutdowns in China could affect demand. Oil prices have fluctuated in recent weeks amid the war in Ukraine, and WTI stabilized 4.04% to $94.29 on Monday while Brent fell 4.18% to 98.48 $.
Meanwhile, AT&T shares rose more than 7% after its WarnerMedia spinoff closed. Airline stocks, including Delta Air Lines and Southwest, also ended the day on a positive note.
The 10-year Treasury yield rose above 2.79%, its highest level since January 2019.
Alongside the March CPI, investors are awaiting the start of the earnings season which is expected to start on Wednesday with JPMorgan and Delta Air Lines, followed by several major banks on Thursday.