Stock futures rose slightly early Tuesday as investors await a key inflation report that could inform the path of the Federal Reserve's monetary policy.
Futures on the Dow Jones Industrial Average gained 54 points, or 0.14%. S&P 500 futures inched up 0.38%, and Nasdaq 100 futures gained about 0.63%.
All eyes are on the February reading of the consumer price index, which is set to be released Tuesday at 8:30 a.m. ET. Economists polled by Dow Jones forecast a monthly gain of 0.4% and a 3.1% increase on headline.
The uptick in January's CPI figure rattled the markets and prompted Fed officials to shift their rhetoric afterward to a more cautious tone about easing policy. The current market pricing indicates that the Fed won't cut interest rates at its meeting on March 19-20 or the one on April 30 to May 1.
"The CPI index likely ran hot in February on higher gasoline prices, but core inflation likely slowed further as car prices fell and rent increases moderated," said Bill Adams, chief economist at Comerica Bank.
The technology-led market rally has lost momentum as of late as some of the biggest winners this year continued to retreat. Nvidia lost another 2% Monday, after dropping more than 5% Friday, its largest one-day decline since May 2023.
Some of the other members of the "Magnificent Seven" also pulled back recently. Apple shares have lost 8.5% in the past month, while Alphabet has slid 7.6%. Microsoft has retreated nearly 4% during the same period and Tesla has fallen 8.2%.
"As the market broadens beyond mega-cap tech names, investors can expect to see more consolidation and fairly modest returns in the high-level market-based indexes," said Mark Hackett, Nationwide's chief of investment research.
