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Stock index futures rose slightly on Wednesday as retail inflation was in line with expectations.
S&P 500 Futures (Santa Clara Stock Exchange) +0.2%Nasdaq 100 Futures (US100:IND) +0.2% and Dow futures (INDU) remained unchanged.
The yield on the 10-year Treasury bond (US10Y) rose 2 basis points to 3.87%. The 2-year yield (US2Y) rose 6 basis points to 4%.
The consumer price index report comes just over a week after recession fears arose following a disappointing jobs report that sparked a sell-off in global markets.
The CPI rose 0.2% month-on-month in July, as expected, and the increase in the core CPI was also in line.
Wall Street closed higher on Tuesday as cooler-than-expected wholesale prices in July raised optimism that upcoming consumer price inflation figures will support the argument that the Federal Reserve will begin cutting rates next month.
“On the market front, there was a synchronized rally yesterday that China's gold-winning swimmers would have been proud of, as a soft PPI set the stage for today's very important CPI and sent markets home in an upbeat mood,” said Deutsche Bank's Jim Reid.
“Unfortunately, the correlation between monthly changes in similar components of the CPI and the PPI is weak in most cases, so we cannot use the PPI data to refine our CPI forecast,” Pantheon Macroeconomics said.