U.S. stock futures trade mixed ahead of crucial inflation report

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U.S. stock futures trade mixed

Highlights

S&P 500 futures rose 0.06%, while Dow futures gained 0.34%.
Nasdaq-100 futures fell 0.36% ahead of the US inflation report.
Fed rate hike expectations remain central to the market outlook.

S&P 500 futures rose 0.06% to 7,578.50, while Dow futures gained 0.34%, to 52,676, based on the latest market readings. Nasdaq-100 futures fell 0.36% to 27,913. The cautious trading followed a strong Wall Street rebound on Monday, as investors assessed fresh warnings from Federal Reserve officials ahead of the consumer price index release, CNBC reported.

Inflation report puts Fed policy back in focus

The October consumer price index is scheduled for release at 8:30 a.m. Eastern time. Economists surveyed by Dow Jones expect headline consumer prices to rise 0.3% from September, while core inflation, which excludes food and energy, is projected to increase 0.2%. Both readings would represent a slowdown from September, when headline prices climbed 0.6% and core prices increased 0.3%.

The report comes as Federal Reserve Governor Christopher Waller has expressed support for another interest rate increase in December. He also raised the possibility of a larger half-percentage-point move if inflation remains elevated. Annual inflation comparisons will be unavailable in the October release because disruptions to data collection during the 2025 government shutdown left gaps in the historical figures.

Global stocks rise after Wall Street rebound

Overseas markets largely advanced ahead of the U.S. inflation figures. Europe's Stoxx 600 gained 0.83%, while Germany's DAX climbed 0.67% and France's CAC 40 rose 1.17%. Asian stocks also strengthened, led by South Korea's Kospi, which surged 4.62%, and Japan's Nikkei 225, which advanced 2.87%.

The gains followed Monday's sharp recovery on Wall Street. The Dow Jones jumped 1,104 points, or 2.2%, while the S&P 500 gained approximately 2.4% and the Nasdaq Composite rose 2.7%. Nvidia shares edged higher in premarket trading after falling more than 4% during the previous session.

Inflation could test the stock market recovery

Tuesday's inflation figures could determine whether Monday's rally extends or gives way to renewed selling. A softer reading would strengthen hopes that the Fed can limit the size of its next rate increase, potentially supporting technology shares and other investments sensitive to borrowing costs.

Stronger inflation, however, could increase expectations of a more aggressive December move and push Treasury yields higher. That would present a particular challenge for growth stocks, whose valuations depend heavily on expectations of future earnings. With Nasdaq-100 futures already underperforming the broader market, investors appear reluctant to make large bets before the inflation data clarify the Fed's next steps.

Earlier, we reported that gold prices retreat as December Fed rate hike looms.

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