Stock futures rise ahead of key inflation reading

Stock futures were higher in early morning trading Wednesday ahead of a key U.S. inflation report.

Futures on the Dow Jones Industrial Average rose 270 points, or 85%. S&P 500 futures were 1.04% higher, and Nasdaq 100 futures gained 1.3%.

Investors are awaiting the release of April’s consumer price index Wednesday morning for the latest temperature check on inflation and whether it has peaked. Rising prices have been front-of-mind, particularly as the Federal Reserve is hiking interest rates and trimming its balance sheet to address inflation.

“We are seeing signs on a month-over-month basis that inflation is peaking,” Brian Belski, BMO Capital markets chief investment strategist, told CNBC’s “Closing Bell: Overtime” on Tuesday. “But are we going to see some sort of a surprise number? That could really get things going.”

Economists expect the CPI to rise 0.2% from the month prior and 8.1% year over year, according to the Dow Jones consensus estimate. That compares with March’s 8.5% year-over-year pace.

On the earnings front, shares of Coinbase slumped nearly 16% premarket and Toyota dipped 4.4% on the back of earnings. Investors are looking ahead to reports Walt Disney, Rivian and Beyond Meat after the bell.

Wednesday’s moves come after the Dow fell for a fourth consecutive day Tuesday in a volatile trading session, alternating between gains and losses. The S&P 500 ticked up 0.25% and the Nasdaq Composite gained about 1%.

Mega-cap technology names, which have struggled in recent weeks, Tuesday’s gain as Microsoft and Apple each rose more than 1%.