Stock futures were marginally up on Wednesday morning as Wall Street looks to keep a strong start to the week going with a key inflation report on deck.
Futures tied to the Dow Jones Industrial Average rose 24 points, or less than 0.1%. S&P 500 futures were also up by less than 0.1%, while Nasdaq 100 futures were marginally above the flatline.
The modest move in futures comes after a broad rally for stocks on Tuesday. The Dow rose more than 400 points, or about 1%. The S&P 500 climbed 1.7%, while the Nasdaq Composite gained 2.4%.
All three major averages are now above their Aug. 2 closing level, which was the session before the global market sell-off on Aug. 5 that appeared to be related to an unwind of trades in Japan and concerns about economic growth.
The speed of the rebound is making some Wall Street pros uneasy.
“I’m not surprised we bounced back. I’m just surprised by how fast and by how much we bounced back,” Allianz chief economic advisor Mohamed El-Erian said on “Closing Bell.”
The market did get a piece of good news on Tuesday when the producer price index report showed cooler inflation than expected. The consumer price index report on Wednesday could similarly fuel trading moves in the upcoming session.
However, even a lower-than-expected CPI report may not be enough to encourage investors who are concerned by recent signs that the U.S. labor market is softening.
“I think the inflation risk is much lower than the unemployment risk,” El-Erian said.