US stocks are set for a strong open as traders wait for key inflation data – CNBC

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U.S. stock index futures looked headed for a positive open on Wednesday, building on solid gains logged in the previous trading session.

Around 6:30 a.m. ET, Dow futures indicated a rise of about 140 points at the open. The Nasdaq and S&P 500 futures also suggested markets would begin trade in the black.

During Tuesday’s session, indexes bounced back from correction levels seen during last week’s trade, with stocks posting a three-day winning streak. While investors are likely to welcome the rebound in equities, investors remain on edge, as concerns of higher interest rates continue to weigh on sentiment.

Last week, all three major U.S. indexes finished the five-day trading period more than 5 percent down each, with the Dow delivering its worst performance since January 2016. And concerns are expected to linger ahead of important data due Wednesday.

The government’s Consumer Price Index (CPI) data are scheduled to be released at 8:30 a.m. ET, and investors will be awaiting the release to see what this means for markets and the economy going forward. Consequently, markets in Asia were on edge Wednesday, as investors grew wary of the report, which could either ease or aggravate worries over rates.

“(Wednesday) will bring the most important CPI report in over 10 years, as rising inflation (which will cause higher interest rates) has become one of the biggest risks to this multi-year rally,” Tom Essaye, founder of The Sevens Report, said in a note Tuesday.

Aside from CPI data, mortgage applications are due to be released at 7 a.m. ET, followed by retail sales at 8:30 a.m. ET and business inventories at 10 a.m. ET.

Groupon, Molson Coors Brewing, Cisco Systems, Applied Materials, TripAdvisor, and Marriott are some of the major names scheduled to publish earnings.

—CNBC’s Fred Imbert contributed to this report

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