US pre-open: Markets subdued ahead of CPI release

US stock futures were pointing to a subdued start on Wall Street on Tuesday as investors treaded cautiously ahead of key inflation figures ahead of the opening bell.

The US consumer price index, due out at 0830 ET, is expected to show that annual inflation slowed to 3.3% in October from 3.7% the month before. However, core inflation (which excludes volatile items like food and energy) is forecast to remain at September's level of 4.1% – still firmly above the Federal Reserve's 2% target.

The Dow Jones Industrial Average and S&P 500 were both flat in pre-market trade, while the Nadsaq rose 0.1%.

Several Fed policymakers – including chair Jerome Powell – have indicated in the past week that the central bank would not hesitate to tighten monetary policy further if inflation doesn't start coming down towards the target, so an upside surprise on Tuesday could see dramatic movements on stock and bond markets.

AJ Bell investment director Russ Mould said "everyone is on tenterhooks" ahead of the inflation data. "The market feels on the cusp of performing a victory parade to celebrate the battle against inflation being won but it is not there yet, with central banks pushing back against the idea rates have definitely peaked."

Bond yields ahead of the opening bell were down 1.9 basis points at 4.617%.

Snapchat shares were rising in pre-market trade on reports that the social media company had entered into a partnership with Amazon to allow in-app purchases from the e-commerce group.

Beauty Health futures dropped over 50% after the skincare reported a worse-than-expected third-quarter loss and delivered full-year revenue guidance short of analysts' estimates.