Stock futures rebound following S&P 500’s 3-day losing streak on inflation fears

Stocks futures were higher in early morning trading Wednesday, as Wall Street tried to recover from a downbeat session following the release of key inflation data.

Futures on the Dow Jones Industrial Average rose 93 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures climbed 0.3% and 0.4%, respectively. Those moves come after the S&P 500 and Nasdaq posted their third straight losing session.

Data released Tuesday showed consumer prices rise 8.5% in March from the previous year — the highest level since 1981 — further fueling concerns of tighter monetary policy from the Federal Reserve.

However, core CPI rose 0.3%, slightly below expectations. Some on Wall Street saw this as a sign that inflation may be nearing a peak.

“I think it’s very likely inflation peaked,” Guggenheim Partners Global chief investment officer Scott Minerd told CNBC’s “Closing Bell: Overtime” on Tuesday. “If it didn’t peak in March, we’re in the process of peaking.” 

The 10-year Treasury hit a new three-year high following the report, topping 2.82% before pulling back. On Wednesday, the benchmark rate traded at 2.75%.

Traders are also awaiting the March producer prices report on Wednesday for more possible signs inflation is near a peak. March PPI was expected to climb 1.1% last month, according to economists polled by Dow Jones.

The corporate earnings season is slated to kick off with JPMorgan Chase and Delta Air Lines slated to report Wednesday.