U.S. stock futures broadly rose early Wednesday as traders looked ahead to the release of another major inflation report.
S&P 500 futures gained 0.1% and Nasdaq 100 futures added 0.27%. Futures tied to the Dow Jones Industrial Averagewas flat.
During Tuesday’s session, both the S&P 500and Nasdaq Composite pulled back from their records. The broad market index slipped 0.16%, while the tech-heavy Nasdaq lost 0.71%. The Dow bucked these losses, adding 56.09 points, or 0.11%.
Stocks were weighed down by losses in the technology sector and higher oil prices after President Donald Trump on Monday called the month-old ceasefire between the U.S. and Iran “unbelievably weak” and “on massive life support” after rejecting an “unacceptable” counterproposal from Tehran to end the war. Investors were also digesting a hotter-than-expected annual consumer price index reading for April which saw consumer prices rise at their highest rate in about three years.
Traders will look forward to the release of another inflation report on Wednesday morning — April’s producer price index. Economists polled by Dow Jones are expecting a headline increase of 0.5% on the month, in line with March’s rate. Excluding volatile food and energy prices, this number is expected to come in at a 0.4% rise.
Even as tech took a breather on Tuesday, the artificial intelligence trade has overall still been the market’s dominant driver this year. Olaolu Aganga, head of portfolio construction at Citi Wealth, believes that AI spend expanding outside of the tech sector leaves room for investors to buy into other opportunities in the market.
“We have global views that we think are lasting and enduring, so energy security and infrastructure — those companies that can benefit from the capex spending with regards to energy and the grid and energy independence,” she said on CNBC’s “Closing Bell: Overtime” on Tuesday afternoon. “So if you’ve missed this particular wave, there are some themes that we believe will be playing out over time, frankly, that we need to focus on, that we think we have durable earnings there as well.”
Allianz, Birkenstock, Alibaba and Nebius will report earnings before Wednesday’s opening bell.
