Stock index futures edged higher Wednesday morning as Wall Street predicted a strong start to the week ahead of a key inflation report.
Futures and Dow Jones Industrial Average It rose 24 points, or less than 0.1%. S&P 500 Index Futures also rose less than 0.1%, while Nasdaq 100 Futures Slightly above flat line.
Futures are trading modestly higher after a sharp rally in stocks on Tuesday. this Dow Chemical It rose more than 400 points, or about 1%. this S&P 500 Index rose 1.7%, while Nasdaq Index up 2.4%.
All three major moving averages are currently trading above their closing levels on August 2, one session before the global market sell-off on August 5 that appeared to be related to Japanese trade unwinding and concerns about economic growth.
The speed of the rebound has some Wall Street professionals uneasy.
“I'm not surprised by our rebound. I'm just surprised by the speed and the extent of our rebound,” Allianz chief economic adviser Mohamed El-Erian said on “The Closing Bell.”
Markets did get one piece of good news on Tuesday, with a producer price index report showing lower-than-expected inflation. Wednesday's consumer price index report may similarly drive trading in the upcoming session.
However, even a lower-than-expected CPI report may not be enough to encourage investors worried about recent signs of weakness in the U.S. labor market.
“I think the risk of inflation is much lower than the risk of unemployment,” El-Erian said.