Stock futures inch higher following highest inflation data in decades

Stocks futures were flat in overnight trading as investors weighed the latest inflation data for March.

Futures on the Dow Jones Industrial Average rose 20 points or 0.06%, while S&P 500 futures and Nasdaq 100 futures were flat.

Tuesday’s inflation data showed consumer prices rise 8.5% in March from the previous year — the highest level since 1981 — further fueling concerns of tighter monetary policy from the Federal Reserve. Core CPI rose 0.3%, slightly below expectations.

“I think it’s very likely inflation peaked,” Guggenheim Partners Global Chief Investment Officer Scott Minerd told CNBC’s “Closing Bell: Overtime” on Tuesday. “If it didn’t peak in March, we’re in the process of peaking.” 

The 10-year Treasury hit a new three-year high, topping 2.82% before pulling back to 2.727%.

After rallying earlier in the day the major averages closed Tuesday’s session in the negative. The Dow Jones Industrial Average fell 87.72 points, or 0.26%, to 34,220.36. The S&P 500 slipped 0.34% to 4,397.45, and the tech-heavy Nasdaq Composite slipped 0.30% to 13,371.57.

Seven sectors ended the day in the negative led by financials. Technology also struggled, with Microsoft and Meta closing down about 1%. Nvidia fell 1.9% and Advanced Micro Devices fell 2.3%, continuing a string of losses in the semiconductor industry.

Oil prices jumped as China relaxed some Covid-19 lockdowns which could have hard-hit demand. The international benchmark Brent crude rose 6.26% to $104.64 per barrel, while West Texas Intermediate crude futures jumped 6.69% to $100.60 per barrel. The moves sent energy stocks rising with Marathon Oil and Occidental Petroleum ending the day up 4.2% and 2.1%, respectively.

Meanwhile, the dollar index rose 0.39% and hit a high of 100.332, its highest level since May 2020. Gold also added 1.43% and settled at $1,976.1.

Investors are looking ahead to the start of earnings season on Wednesday, which begins with JPMorgan and Delta Airlines.