Stock Market Today: Inflation data takes center stage, stocks rebound higher

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U.S. stock futures rebounded higher on Tuesday, while U.S. Treasury yields held steady and the dollar snapped a five-day winning streak as investors focused on a slew of economic data that could determine the bond market’s recent rout.

The S&P 500 ended modestly higher on Monday, rising about 9 points on the day and closing only about 50 points above Election Day levels. However, the broader trading session moves were tied to a pullback in market volatility, which was partly tied to lower U.S. Treasury yields.

The bond market is likely to be in focus again on Tuesday as the Commerce Department releases producer price inflation data for December at 8:30 a.m. ET, and traders will release key data on consumer price inflation on Wednesday.

At the start of New York trading, the benchmark 10-year note yield was last at 4.782% and the 2-year note was changing hands at 4.386%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, fell 0.35% to 109.537 amid reports that President-elect Trump plans to phase in tariffs over several months, potentially weakening their impact on inflation.

The Bloomberg News report provided a much-needed sentiment boost for battered stocks and is expected to provide at least earlier levels of support as trading begins.

Futures contracts tied to the S&P 500 are expected to open up about 30 points, with the Dow Jones Industrial Average up 140 points and the Nasdaq up 150 points.

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Global oil prices also came into focus after WTI crude posted its highest close in more than four months, as traders continued to examine the impact of new U.S. sanctions on Russian oil product sales.

The global pricing benchmark Brent crude oil contract for March delivery was last down 36 cents at $80.66 a barrel, while February WTI futures fell 26 cents to $78.54 a barrel.

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In overseas markets, reports of phasing in tariffs boosted Europe’s Stoxx 600 for its first trading day in three days, with the benchmark rising in midday trading in Frankfurt. Meanwhile, Britain’s FTSE 100 edged up 0.14% in London.

Overnight in Asia, Japan’s Nikkei 225 index closed down 1.83% as technology stocks fell after the United States announced new export rules for artificial intelligence technology. Meanwhile, the MSCI ex-Japan regional benchmark fell 0.47% in the final trading session.

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