US stock futures rose across the board on Tuesday as investors took within the first of two key inflation reports this week, which showed prices rose lower than expected in December. Also in focus was a report that the incoming Trump administration could hike tariffs more steadily to ease inflationary pressures.
S&P 500 futures (ES=F) moved up roughly 0.5%, while those on the tech-heavy Nasdaq 100 (NQ=F) placed on 0.7%, each set to bounce back from Monday’s losses. Meanwhile, Dow Jones Industrial Average futures (YM=F) added 0.3% on the heels of a winning day for the blue-chip index.
The Producer Price Index, which tracks price changes corporations see at a wholesale level, rose 3.3% over last 12 months, up from 3% in November but lower than economists expected. It rose 0.2% over the previous month, also lower than expected. The report lays the groundwork for Wednesday’s heavily anticipated consumer inflation print.
Meanwhile, President-elect Donald Trump’s team is considering a month-by-month rollout of promised tariff increases quite than imposing higher levels in a single move, Bloomberg reported, in a bid to assist prevent inflation spikes.
The likelihood that Trump’s policies will pump up price pressures has been worrying markets, as that would limit the Federal Reserve’s scope for cutting rates of interest. But gradual tariffs could still be “problematic” for the central bank’s efforts to complete the job of cooling inflation, a UBS strategist said.
At close: January 13 at 4:46:46 PM EST
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After the tariff report, the dollar (DX-Y.NYB) retreated after a five-day winning streak, while the 10-year Treasury yield (^TNX) pulled back from the 14-month highs tapped in Monday’s bond sell-off.
On the company front, shares of KB Home (KBH) jumped almost 10% in pre-market trading after the house builder’s fourth quarter earnings beat estimates.
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