U.S. stock futures were mixed on Tuesday night, with investors looking ahead to another key inflation report. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up 0.93% and 0.06%, respectively, at 10:34 p.m. EDT on August 12, while the Dow Jones Industrial Average (DJIA) futures were down 0.03%.
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On Tuesday, all three major U.S. indices posted strong gains. The S&P 500 and the Nasdaq Composite both closed at new record highs, up 1.1% and 1.4%, respectively. Also, the Dow Jones climbed 1.1%. Small-cap stocks, as measured by the Russell 2000 Index, jumped 3% on expectations to benefit from lower short-term interest rates.
The positive market sentiment on Tuesday was driven by lower-than-expected inflation data, easing concerns that tariffs were driving up prices. As a result, traders are now pricing in a near 94% probability of a Federal Reserve rate cut at its September meeting.
Looking forward, investors are awaiting Thursday’s Producer Price Index (PPI) for further clues on wholesale inflation.