U.S. stock futures rose across the board on Tuesday as investors received the first of two key inflation reports this week, which showed prices rose less than expected in December. Also in focus was a report that the incoming Trump administration could raise tariffs more gradually to ease inflationary pressures.
S&P 500 futures (ES=F) rose about 0.5%, while the tech-heavy Nasdaq 100 futures (NQ=F) rose 0.7%, both set to recover from Monday’s losses . Meanwhile, Dow Jones Industrial Average futures (YM=F) rose 0.3% after a winning day for the blue-chip index.
The Producer Price Index, which tracks price changes seen by companies at the wholesale level, rose 3.3% from last year, up from 3% in November, but less than economists expected. It increased 0.2% compared to the previous month, also less than expected. The report sets the stage for Wednesday’s highly anticipated consumer inflation number.
Meanwhile, President-elect Donald Trump’s team is considering implementing promised tariff increases month by month rather than imposing higher levels all at once, Bloomberg reported, in a bid to help prevent inflation spikes.
The likelihood that Trump’s policies will increase price pressures has worried markets, as that could limit the Federal Reserve’s room to cut interest rates. But gradual tariffs could still be “problematic” for the central bank’s efforts to finish the job of cooling inflation, a UBS strategist said.
Closing: January 13 at 4:46:46 pm EST
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Following the tariff report, the dollar (DX-Y.NYB) retreated after a five-day winning streak, while the 10-year Treasury yield (^TNX) retreated from 14-month highs hit in the bond selloff on Monday.
On the corporate front, shares of KB Home (KBH) rose nearly 10% in premarket trading after the homebuilder’s fourth-quarter earnings beat estimates.
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