Investors digested another hot print on inflation and looked ahead to a busy day of earnings on Wednesday. U.S. stock futures opened higher Tuesday evening following a tumultuous day in markets.
The S&P 500 contract was flat to slightly positive. On Tuesday’s regular trading day, the index fell for the third straight session, while the Dow Jones Industrial Average and Nasdaq Composite also fell.
On Wednesday, investors will receive quarterly results from several significant U.S. firms and stock index components. JPMorgan Chase (JPM), the largest bank in the United States by assets, will be among them, as will Bed, Bath & Beyond (BBBY), BlackRock (BLK), and Delta Air Lines (DAL) as firms battle with rising labor, raw material, and transportation costs, and as they wrap up last year’s initial reopening-fueled surge of inactivity. Companies in the S&P 500 predict to report year-over-year earnings growth of just 4.5 percent, the worst rate since the fourth quarter of 2020 if realized. Inflation has remained a significant source of anxiety for investors, threatening to put further strain on individuals’ wallets and business profits. Inflation surged at the quickest rate since late 1981 last month, according to the Bureau of Labor Statistics’ March Consumer Price Index (CPI), rising by a slightly faster-than-expected 8.5 percent over the previous year.
S&P 500 Reverses Early Gains
According to Labor Department data released on Tuesday, consumer prices rose 8.5 percent from a year ago in March; slightly higher than projected and at their highest level since 1981. Meanwhile, core CPI, excluding food and energy costs, rose less than predicted in March, rising 0.3 percent vs. 0.5 percent expected by Dow Jones experts. Every year, core prices increase by 6.5 percent.
After a solid start to the day, tech stocks have given up some of their gains. Microsoft and Nvidia both fell 1.1 percent and 1.9 percent, respectively, on the news.
On Tuesday, the adjustments were made despite a rise in oil prices, as China eased back on COVID lockdowns hurting demand. Brent crude, the worldwide standard, rose 6.26 percent to $104.64 per barrel. In the meantime, West Texas Intermediate crude futures rose 6.69 percent to $100.60 per barrel.
Energy stocks rose in tandem with rising oil prices. The supply of Occidental Petroleum increased by 2.1 percent. Devon Energy increased its value by 3.7 percent. Marathon Oil increased by about 4.2 percent, while Chevron increased by roughly 2.1 percent.
