U.S. stock index futures posted sharp gains ahead of Wednesday’s open, building upon the solid rise seen during the previous trading session.
Around 5:00 a.m. ET, Dow futures were up 116 points, indicating a rise of 133.55 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.
Dr. Pepper Snapple, Groupon, Molson Coors Brewing, Cisco Systems, Applied Materials, TripAdvisor, and Marriott are some of the major names scheduled to publish earnings.
No speeches by Federal Reserve members are due to take place Wednesday.
—CNBC’s Fred Imbert contributed to this report
