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Stock futures climb ahead of inflation print

U.S. stock futures moved higher on Tuesday morning ahead of a highly anticipated inflation print.

Futures tied to the S&P 500 (^GSPC) advanced by at least 0.4% in premarket trading, while futures on the the Dow Jones Industrial Average (^DJI) climbed by 0.5%. The technology-heavy Nasdaq Composite (^IXIC) rose by 0.4%.

Stocks rallied Monday as investors expect a softer inflation reading and an easing of the Fed’s rate-hiking pace from the central bank’s last policy meeting of the year. The S&P 500 gained 1.43% to kick off the new week, with energy, utilities, and tech outperforming.

The yield on the 10-year U.S. Treasury note slipped to 3.59% from 3.617% on Monday. The counter-moves higher on real yields has been modest so far, but it is not connected with the 1% rally seen on Monday from the broad equity market, according to Bespoke Investment Group.

The U.S. consumer price index reading is due Tuesday ahead of the Fed meeting, where officials are expected to lift rates by 50 basis points on Wednesday, a slowdown from the 0.75% increases over the four previous meetings.

Economists surveyed by Bloomberg estimate headline CPI to increase by 0.3% for the second consecutive month, with year-over-year CPI falling from 7.7% to 7.3%. Core CPI, excluding volatile food and energy components, is projected to rise 6.1% over the same month last year, slightly lower than the 6.3% reading in October.

“Indeed, we don’t get many days as important as the next two, and the US CPI today and the FOMC tomorrow are likely to be the difference between a big Santa Claus rally and a visit from Scrooge ahead of Christmas,” Jim Reid and colleagues at Deutsche Bank wrote in an early morning note Tuesday.

In commodity markets, oil prices were higher, with WTI crude futures up 0.5% to $73.58 a barrel, driven by China’s relaxation of COVID-related restrictions.

On the corporate news front, United Airlines (UAL) has placed an order for 100 of Boeing’s top-of-the-line 787 Dreamliners with options to purchase 100 more, according to a press release. Shares of United Airlines down by 1% on the news before the opening bell.

Elsewhere, in the crypto world, Sam Bankman-Fried, founder and former CEO of bankrupt crypto exchange FTX, was arrested on Monday in the Bahamas after the U.S. filed criminal charges.

Separately, Bankman-Fried was accused by the Securities and Exchange Commission with defrauding investors. Bitcoin (BTC-USD) traded north of $17,000, while Ethereum (ETH-USD) rose 2.6% to approach near $1,300.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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