Calm Seas Ahead of Inflation Data: US Markets Chart New Course

U.S. stock futures show a positive trend on Tuesday as government bond yields stabilize and the dollar breaks a five-day winning streak. Investors are eagerly awaiting upcoming economic data that could better define the recent weakness in the bond market. The S&P 500 posted a slight gain on Monday, with the index rising by about 9 points and settling around 50 points above election day levels. However, movements during the broader trading opening were mostly associated with reduced market volatility, partly due to easing government bond yields. Bond markets are likely to be back in focus, as the Commerce Department is set to release producer price inflation data for December at 8:30 a.m. local time this morning. This will be followed by a critical reading of consumer price inflation on Wednesday. At the time of the New York market opening, the yield on ten-year government bonds was last at 4.782%, while two-year bonds were trading at 4.386%. The U.S. dollar index, which measures the greenback against a basket of six global currencies, fell by 0.35% to 109.537. Reports suggest that President-elect Donald Trump plans to introduce tariffs over several months, which could potentially dampen their impact on inflation. The Bloomberg report gave hard-hit stocks a much-needed boost in sentiment and promises an earlier support level at least for the start of trading. Futures tied to the S&P 500 indicate a gain of roughly 30 points at the opening bell, the Dow Jones Industrial Average is trading 140 points higher, and the Nasdaq is trading 150 points higher. Global oil prices also remain in focus after WTI crude oil closed at the highest level in more than four months. Traders are continuing to analyze the impact of new U.S. sanctions on the sale of Russian oil products. Brent crude contracts for March delivery, the global price benchmark, were recently 36 cents lower at $80.66 per barrel, while WTI futures for February fell 26 cents to $78.54 per barrel. In overseas markets, reports of staggered tariffs led to an increase in Europe's Stoxx 600, which rose for the first time in three days during midday trading in Frankfurt. Meanwhile, Britain's FTSE 100 improved by 0.14% in London. Overnight, Japan's Nikkei 225 closed 1.83% lower as tech stocks retreated following the announcement of new U.S. export rules for AI technologies. The regional MSCI ex-Japan benchmark was last down 0.47% ahead of the final trading hours.