U.S. equity futures moved slightly higher on Tuesday evening after the major exchanges closed the regular trading session with little net movement, as investors adopted a cautious stance ahead of key inflation data and continued to weigh developments around the U.S.-Israel war with Iran.
At 20:42 ET (00:42 GMT), S&P 500 futures were up 0.3% at 6,808.25 points, Nasdaq 100 futures rose 0.3% to 25,058.75 points and Dow Jones futures traded 0.2% higher at 47,855.0 points.
Market participants refrained from making large directional bets as they awaited the release of the February Consumer Price Index report due on Wednesday, which is expected to offer guidance on the path of U.S. inflation and, by extension, the Federal Reserve's interest rate outlook.
Concerns over inflation have been heightened in recent days following a sharp jump in oil prices, which raised the prospect that rising energy costs could feed through to consumer prices. Oil surged to nearly $120 a barrel on Monday amid fears that the expanding conflict involving the United States, Israel and Iran could lead to disruptions in global crude supplies. Prices retreated on Tuesday after U.S. President Donald Trump said the war with Iran could be over soon, which eased some worries about prolonged supply interruptions.
Those oil market moves have amplified sensitivity to inflation risks globally, given the sizable role energy costs play in consumer price trends. Investors are also looking beyond the CPI to the Federal Reserve's preferred inflation gauge, the personal consumption expenditures price index, which is due on Thursday for February.
Corporate earnings remained part of the market picture. Enterprise software maker Oracle Corporation reported fiscal third-quarter revenue of about $17.19 billion, topping analysts' expectations of roughly $16.9 billion, while earnings per share also beat estimates. Oracle's shares climbed about 10% in extended trading following the report.
With inflation prints and geopolitically driven commodity moves dominating attention, traders kept positions relatively muted as they sought clarity from the upcoming data releases and continued to monitor the evolving conflict dynamics that have influenced energy markets.
Summary
U.S. futures rose modestly after a flat regular session as investors awaited the February CPI release and assessed developments in the U.S.-Israel conflict with Iran. Oil price swings have increased inflation concerns, and Oracle's stronger-than-expected quarterly results pushed its stock higher in after-hours trading.
Key points
- Futures: S&P 500 futures +0.3% to 6,808.25; Nasdaq 100 futures +0.3% to 25,058.75; Dow futures +0.2% to 47,855.0 at 20:42 ET (00:42 GMT).
- Inflation focus: February CPI due Wednesday will inform views on U.S. inflation and the Fed's rate path; PCE data follows on Thursday.
- Corporate earnings: Oracle reported roughly $17.19 billion in fiscal third-quarter revenue, beating the approx. $16.9 billion consensus; shares rose about 10% in extended trading.
Risks and uncertainties
- Inflation risk tied to energy prices - oil's recent spike near $120 a barrel raises the potential for higher consumer price pressures, which could influence sectors sensitive to fuel and transportation costs.
- Geopolitical risk - the ongoing conflict involving the United States, Israel and Iran creates uncertainty for global crude supply and markets dependent on stable energy deliveries.
- Data-driven investor caution - pending CPI and PCE releases leave traders in a wait-and-see mode, which can reduce liquidity and heighten short-term volatility across equity and commodity markets.