U.S. equity futures searched for direction early Tuesday morning as investors awaited an update on U.S. inflation that has been stronger than expected.
Stocks in this Article
Wall Street's benchmark S&P 500 index closed higher Monday, snapping a five-day losing streak.
Investors were watching for August inflation data. Headline inflation stands above 5% as consumer and business activity revives.
AT&T, UNION REACH AGREEMENT TO PROTECT 29,000 TECHNICIAN JOBS: REPORT
The price spike has prompted fears the Federal Reserve might feel pressure to roll back easy credit and other stimulus that is pushing up share prices. But Fed officials indicate they believe the surge is temporary and they will keep interest rates low until a recovery is established.
"The Fed has generally stuck to its transitory inflation view, but we think that risks may be tilted to the upside," Eugene Leow of DBS said in a report. "In any case, excessively loose monetary policy may not increase output or employment but may worsen price pressures and distort market signals further."