US stock index futures drift higher with CPI data in focus

U.S. stock index futures rose slightly on Tuesday evening, steadying after another negative session on Wall Street as anticipation of key inflation data kept investors on edge. 

Futures steadied after Wall Street closed lower for a second straight session amid persistent weakness in technology stocks, while anticipation of Wednesday’s inflation reading and next week’s Federal Reserve meeting also spurred caution. 

Risk appetite was also rattled by heightened tensions in the Middle East as rebel forces ousted Syria's government.

S&P 500 Futures rose 0.1% to 6,051.25 points, while Nasdaq 100 Futures rose 0.1% to 21,423.50 points by 18:14 ET (23:14 GMT). Dow Jones Futures rose 0.1% to 44,357.0 points.  CPI data awaited for more rate cues 

Focus is now squarely on consumer price index data due on Wednesday, for more cues on inflation and the potential path of interest rates.

Headline CPI is expected to rise to 2.7% from 2.6% year-on-year, while core CPI , which excludes volatile food and energy items, is forecast to remain at 3.3%. 

Wednesday’s reading is likely to factor into the Fed’s plans for interest rates, amid growing uncertainty over the long term outlook for rates. 

The central bank is widely expected to cut interest rates by 25 basis points when it meets next week. But several Fed officials have called for a more cautious approach to future easing, citing concerns over sticky inflation and resilience in the U.S. economy. 

Investors are also seeking more cues on what President-elect Donald Trump’s policies will entail for inflation and the economy, with his plans for increased trade tariffs expected to increase price pressures.  Wall St pressured by tech losses; Alphabet surges 

Wall Street indexes ended lower on Tuesday amid sustained weakness in technology stocks, especially after weaker-than-expected earnings from cloud giant Oracle Corporation (NYSE:ORCL ). The stock fell slightly in after-hours trade after losing nearly 7% during the session.

Google owner Alphabet Inc (NASDAQ:GOOGL ) was a standout performer, rising 0.6% after-hours following a 5.6% jump during the session. The company announced a new breakthrough in quantum computing, which could herald a sharp increase in computing speeds. 

Broader technology stocks retreated, seeing some profit-taking after a strong run-up in the past week. This pressured Wall Street indexes, keeping them subdued ahead of Wednesday’s inflation reading.

The S&P 500 fell 0.3% to 6,034.91 points on Tuesday. The NASDAQ Composite fell 0.2% to 19,688.98 points, while the Dow Jones Industrial Average fell 0.4% to 44,247.83 points. 

Source: Investing.com