DJIA futures rise as traders weigh Fed rate-hike signals and CPI data

Futures tied to the Dow Jones Industrial Average were up 177 points, or 0.3%, early on Tuesday as traders awaited a pivotal U.S. consumer inflation report and digested fresh comments from a senior Federal Reserve official. S&P 500 futures added 0.1%, while Nasdaq-100 futures slipped 0.2%. The gains followed a strong session on Monday, when the Dow rose 1,104 points, or 2.2%.

Fed signals a possible December rate hike

Fed Governor Christopher Waller said in a speech that he leans toward a rate increase at the December meeting. He added that he would back more forceful action if inflation readings come in higher than expected, and suggested a half-point increase should be considered.

"Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take," Waller said. He also said the timing of the hikes matters less than making sure the promised increases are carried out within a reasonable period.

Inflation data in focus

The October consumer price index is due at 8:30 a.m. ET. Economists polled by Dow Jones expect headline CPI to rise 0.3% from the prior month and core CPI, which excludes food and energy, to rise 0.2%. Both would slow from September, when headline CPI grew 0.6% and core CPI advanced 0.3%.

Natixis CIB Americas chief economist Christopher Hodge expects the slowdown in core prices to come mainly from a reversal in shelter costs, including owners' equivalent rent and lodging away from home. He also pointed to steadier diesel prices easing pressure on energy-intensive goods. The report will not include an annual comparison because the 2025 government shutdown prevented the Bureau of Labor Statistics from collecting some data.

Oil slides and Asian markets rally

Crude prices extended a sharp decline that began last week. As of early Tuesday, Brent crude futures were 1.3% lower at $91.45 a barrel and U.S. West Texas Intermediate was down 1.3% at $85.70. Brent has fallen 6.9% for the week after losing 16.4% the previous week, on hopes of a diplomatic resolution to the Iran war. U.S. President Donald Trump told reporters on Monday that fresh U.S. strikes on Iran were "highly unlikely."

Asian indexes closed sharply higher. Japan's Nikkei 225 rose 2.87% to 60,459.58, and South Korea's Kospi jumped 4.39% to 5,239.13. Hong Kong's Hang Seng gained about 0.4%, and China's CSI 300 edged up to 4,059.11. In Europe, the pan-European Stoxx 600 rose 0.9% shortly after the opening bell, led by France's CAC 40.

Nvidia and chip stocks

Nvidia shares closed more than 4% lower on Monday after CEO Jensen Huang told staff in an email that he had been "unfaithful" to his wife and had "fallen short" of his responsibilities. Reports have linked his relationship to an alleged Chinese spy. Shares edged higher in premarket trade on Tuesday as investors weighed the possible fallout.

European chip stocks rose. Infineon gained 4.8% after posting a record fourth quarter and forecasting revenue growth of more than 20% in 2027. Citi analysts said the company's data-center power outlook offered a positive signal on AI demand despite recent concerns about deployment timelines.

What we know so far

Markets are recovering from a volatile week that was driven by worries about slower data-center buildouts after Democrats' midterm election gains. Investors now await the CPI figures and will watch whether the Fed moves toward a December increase of 25 or 50 basis points. The Nvidia situation remains developing.

Financial news service reports quoted in this coverage were not all in agreement on every detail, and the index moves cited are early-session figures that may shift as trading continues.