U.S. stock futures added to gains on Tuesday after key inflation data came in hotter than expected to help set expectations for a Federal Reserve interest rate cut.
S&P 500 (^GSPC) futures rose 0.5%, while those in the tech-heavy Nasdaq 100 (^NDX) were roughly 0.8% higher after two days of losses. Dow Jones Industrial Average (^DJI) futures rose 0.2%.
Investors are digesting the release of the Consumer Price Index, one of the most important data inputs in determining the central bank's next policy move. Inflation was expected with a monthly gain of 0.4% in February, following an increase of 0.3% in February. But “core” CPI – which strips out food and energy prices – rose 0.4% on the month and gained 3.1% on the year, beating estimates.
The CPI print is seen as influential, with central bank policymakers saying they want to ensure inflation eases before they start cutting rates from their historically high levels. Ahead of the CPI release, S&P 500 traders led a 0.9% move in either direction for stocks.
Meanwhile, bitcoin (BTC-USD) rose to $72,120 and continued its record rally. Booming inflows into crypto assets have helped the leading token post nearly 70% gains so far this year, prompting bulls to predict that bitcoin could soar to $350,000 this year.
On the corporate front, shares of Oracle ( ORCL ) rose 12% in premarket trading, amid a tie-up with AI chip maker Nvidia ( NVDA ) and the database giant's progress in cloud computing.
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