Futures tied to the S&P 500 and the tech-heavy Nasdaq Composite each gained about 0.7% in premarket trading. Dow futures jumped 200 points, or about 0.6%. The Bureau of Labor Statistics is scheduled to release the August Consumer Price Index (CPI) at 8:30 AM. ET. The data is expected to show that inflation rose at an annual rate of 8.1 percent last month, according to consensus estimates compiled by Bloomberg. If held, the measure would mark the second straight decline in prices since the four-decade highs reached earlier this year. Tuesday’s print is likely to be a boost moment for the recent rally for equity markets. On Monday, a 1 percent rise in the S&P 500 across all 11 sectors helped the index post its biggest four-day gain since June, according to Bloomberg data. The latest gauge of how fast inflation is rising across the U.S. economy comes a week before Federal Reserve officials convene for their next meeting on Sept. 20-21. Market participants widely expect policymakers to deliver a third consecutive rate hike of 75 basis points after weeks of hawkish messages from members of the US central bank. “Softer-than-expected inflation readings last month may have fueled hopes that the Fed will raise rates less aggressively, but Powell was clear that the bank won’t stop until the job is done,” Chris Larkin, managing director of trading in Morgan. Stanley’s E*TRADE said in a note. U.S. Federal Reserve Board Chairman Jerome Powell waits for a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill in Washington, U.S., January 11, 2022. Brendan Smialowski/Pool via REUTERS “And with market expectations for a less hawkish Fed tempered, investors may focus on other challenges facing the market, such as unrealistically high earnings estimates and headwinds created by an extremely strong U.S. dollar.” Peloton ( PTON ) was in the spotlight early Tuesday following an announcement Monday afternoon that co-founder John Foley is stepping down from the board, months after Peloton hired former Spotify executive Barry McCarthy as CEO. Shares were down about 2% before the open. The story continues Elsewhere, shares of Rent the Runway ( RENT ) fell nearly 25% in premarket trading Tuesday after the company cut its full-year guidance and revealed plans to cut 24% of its corporate workforce , citing “potentially tougher macroeconomic conditions.” “Once we get past this week’s CPI and CPI inflation reports and next week’s FOMC meeting, the next major market catalyst will be third quarter earnings,” DataTrek’s Nicholas Colas said in a note. According to data from FactSet Research, earnings growth expectations for the S&P 500 rose 3.7% for the third quarter, down sharply from expectations for a 9.8% increase at the end of June. Colas points out that analysts have cut third-quarter earnings expectations over the past 2-3 months for every sector of the index except energy, and seven of the 11 groups are now expected to post an absolute year-over-year drop in earnings, compared to only three in the second quarter. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
