US stock futures remained steady on Tuesday as investors awaited the release of January’s inflation report. This report is anticipated to offer insights into the Federal Reserve’s plans for interest rates amid ongoing economic policies under President Donald Trump’s administration.
Nasdaq futures (NQ=F) edged up by 0.2%, while S&P 500 futures (ES=F) and Dow Jones futures (YM=F) remained flat.
Inflation Data and Its Impact on Federal Reserve Decisions
The January Consumer Price Index (CPI) report is scheduled for release on Wednesday at 8:30 a.m. ET. Analysts expect consumer prices to have risen by 0.3% compared to the previous month, a slight slowdown from December’s 0.4% increase. Additionally, core prices—excluding food and gas—are expected to show a 3.1% year-over-year rise.
Fed Chair’s Cautious Approach Amid Inflation
Federal Reserve Chair Jerome Powell addressed Congress on Tuesday, reaffirming the central bank’s cautious approach toward reducing interest rates. Powell’s stance comes in light of persistent inflation and the uncertainty surrounding economic policies under Trump.
Earnings Reports in Focus
Investors are also eyeing earnings reports from Reddit (RDDT) and Robinhood (HOOD). Reddit is set to announce its earnings after the market closes on Wednesday, with Wall Street having high expectations. Robinhood’s stock recently reached a three-year high, further building anticipation for its report.
Trade Tensions and Economic Trust
Amid ongoing trade tensions, a report revealed a dip in public trust regarding Trump’s handling of the economy. With tariffs shaking markets, reciprocal tariffs are expected to be announced by Friday this week, potentially affecting global trade relations.
Related topics:
