Traders work on the floor of the New York Stock Exchange (NYSE) in New York, November 15, 2022.
Brendan McDiarmid | Reuters
Stock futures rose early Wednesday as investors weighed in on a softer-than-expected inflation report and looked ahead to retail sales data due later.
Futures contracts related to the Dow Jones Industrial Average added 59 points, or about 0.18%. S&P 500 and Nasdaq 100 futures rose 0.16% and 0.19%, respectively.
All of the major averages ended the regular trading session higher on Tuesday, with the S&P 500 closing up 0.87% and the Dow adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only major average on pace for a slight gain for the week. The producer price index, which measures wholesale prices, came in below expectations, easing some investor concerns about inflation.
Chinese technology stocks were among the top performers on Tuesday, with the KraneShares CSI China Internet ETF rising 9.56% for its best daily performance since March 16. Nine out of the 11 S&P 500 sectors rose, leading the rally with telecom services and information technology. Both healthcare and materials reported slight losses.
Stocks saw a strong rally in the wake of last week’s better-than-fright CPI report. Last week, the S&P 500 posted its best weekly extension since June and all major averages are on track to end the month with gains.
Some investors say a near-term downturn looms.
“In the short term, the market is too stretched and overdue to turn back and digest the recent rally,” said Adam Sarhan, CEO of 50Park Investments.
Retail sales due for release on Wednesday can Offers another look at consumer behavior amid inflation. Earnings season also continues with reports from Target, Cisco, and Nvidia.