US pre-open: Futures higher following February CPI reading
By Iain Gilbert
Date: Wednesday 12 Mar 2025
(Sharecast News) - Wall Street futures were in the green ahead of the bell on Wednesday as investors digested February's better-than-expected CPI reading.
As of 1245 GMT, Dow Jones futures were up 0.77%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.17% and 1.56% firmer, respectively.
The Dow closed 478.23 points lower on Tuesday, extending heavy losses recorded in the previous session after Donald Trump announced that he would double tariffs on steel and aluminium imports to 50% in response to Canada's move to take a 25% levy on electricity exports.
Doug Ford, Premier of Ontario, later said he would put a pause on the surcharge, and White House trade advisor Peter Navarro stated Trump would not raise the Canadian steel and aluminium tariffs to 50%. However, the original 25% duties still came into effect on Wednesday.
Today's primary focus, however, will undoubtedly be last month's consumer price index, which increased to 319.08 points in February, up from 317.67 points in January, according to the Bureau of Labor Statistics, with the annual inflation rate easing to 2.8% from 3% in January and below market expectations of 2.9%. On a monthly basis, CPI rose by 0.2%, slowing from 0.5% in January and below market expectations of 0.3%
Trade Nation's David Morrison said: " US stock indices have been in free-fall for the best part of a month now. Monday's slump had many analysts declaring that the sell-off had reached exhaustion levels and that investors should prepare for a sharp rebound. That wasn't to be. Yesterday brought further losses for the Dow, S&P 500 and Nasdaq. Markets have been rocked by President Trump's tariffs. These have already been imposed on Canada, Mexico and China, and today brings additional 25% levies on US imports of aluminium and steel.
"There have been postponements, exceptions and retaliations, and investors are struggling to keep up. But the overall sense is that tariffs are no longer just a threat ahead of negotiations. Instead, in a Trump administration, they are a weapon, however blunt, which President Trump is prepared to employ."
Elsewhere on the macro front, US mortgage applications surged 11.2% in the week ended 7 March, according to the Mortgage Bankers Association of America. Last week's increase extends the seven-week high surge of 20.4% in the last week of February and comes in line with another decrease in benchmark mortgage rates as fears of a potential US recession kept yields on asset-backed securities in check. Applications to refinance a mortgage soared by 16%, while applications to purchase a new home were up by 7%.
In the corporate space, Groupon shares were higher in pre-market trading thanks to some better-than-expected FY revenue guidance, while convenience store operator Casey's General Stores was also in the green on the back of Q3 results that came in ahead of analyst's expectations.
Reporting by Iain Gilbert at Sharecast.com
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