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The stock market looks poised to add to Tuesday’s gains at the open, with megacap stocks all higher premarket.
Nasdaq 100 futures (NDX:IND) +0.9% lead S&P (SPX) +0.6% and Dow (INDU) +0.5% futures.
S&P sectors are mostly higher before the bell led by Info Tech. Energy is the only decliner as crude prices dip.
Volatility is continuing to ease, with the VIX down to around 21.
There is dip-buying in the bond market following yesterday’s drop in prices. The 10-year Treasury yield is down 3 basis points to 1.93%.
The 10-year hasn’t topped 2% since August 2019.
The big retail inflation numbers arrive Thursday and Wall Street will hear from two Fed speakers today: board member Michelle Bowman at 10:30 a.m. ET and Cleveland Fed President Loretta Mester at noon.
“Treasury yields have lagged the selloff in European sovereign yields since the hawkish showings from the ECB and BoE last week, though Treasuries made up ground following the strong employment and average hourly earnings data Friday morning, which has raised the stakes for tomorrow’s CPI as a potential catalyst for US rates.” Deutsche Bank’s Jim Reid said. “Fed funds futures are currently pricing approximately a 35% chance of a 50bp rate hike in March, and 5.45 rate hikes (assuming 25bp increments) for 2022 as a whole. For reference, our US economists see the year-on-year CPI increasing to +7.2%, which would be the highest going back to 1982.”
ARK Invest’s Cathie Wood reiterated her position yesterday that the economy doesn’t have an inflation problem.