US pre-open: Futures flat ahead of March CPI reading

Wall Street futures were pointing to a mostly flat open ahead of the bell on Tuesday as market participants awaited the publication of a key inflation report later in the morning.

As of 1230 BST, Dow Jones and S&P 500 futures were down 0.01%, while Nasdaq-100 futures had the index opening 0.01% higher.

The Dow closed 413.04 points lower on Monday as Treasury yields continued to move higher ahead of the Q1 earnings season.

Tuesday's primary focus will be a reading of last month's consumer price index, scheduled for 1330 BST, with data expected to show an 8.4% year-on-year increase in prices, the highest level seen since December 1981, as rising food costs, rents, and energy prices were pegged to be primary contributors to the increase.

Also drawing investor attention was news that Treasury yields had jumped to multi-year highs, with the yield on the benchmark 10-year Treasury note trading at 2.801% early on Tuesday - a level not recorded in over than three years.

On the macro front, the National Federation of Independent Business' small business optimism index declined for a third straight month in March, falling from 95.7 in February to 93.2 - the lowest since April 2020. The percentage of owners expecting better business conditions over the next six months decreased 49%, the lowest level on record, with inflation seen as the most important problem by 31% of business owners, the biggest share since the first quarter of 1981.

"With inflation, an ongoing staffing shortage, and supply-chain disruptions, small-business owners remain pessimistic about their future business conditions. Their expectations for sales growth and business conditions later this year are in the tank" said NFIB chief economist Bill Dunkelberg.

Still to come, March's CPI reading will be published at 1330 BST and the Federal Government's budget statement for last month will follow at 1900 BST.

No major corporate earnings were slated for release on Tuesday but JPMorgan Chase and Delta were both set to report results on Wednesday, while Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo will report before markets open on Thursday.