Jan 12, 2022 07:01AM ET
By: AnalysisWatch
US equity markets opened marginally higher on Wednesday, continuing the positive trend from the previous session ahead of the release of key inflation data that could shed light on when the Federal Reserve will begin tightening monetary policy.
At 7 a.m. ET (1200 GMT), the Dow futures contract was up 30 points, or 0.1%, the S&P 500 futures contract was up 5 points, or 0.1%, and the Nasdaq 100 futures contract was up 25 points, or 0.2%.
Major indices closed higher on Wall Street on Tuesday, ending a five-day sell-off in the broad-based S & P 500, with the tech-heavy Nasdaq Composite leading the way after Fed Chairman Jerome Powell eased fears he would signal a faster-than-expected tightening plan at his confirmation hearing on Capitol Hill.
Government bond yields in the United States rose sharply in the first days of the new year following the Federal Reserve's tightening stance at its December meeting, putting particular pressure on the highly leveraged technology sector.
This new positive sentiment will be tested again on Wednesday with the release of the latest US consumer inflation data at 8:30 AM ET (1330 GMT). The consumer price index is expected to rise by a hefty 7% year-on-year, the largest price increase since the early 1980s.
Biogen shares were trading sharply lower in pre-market trading after a US health regulator decided to limit Medicare coverage for certain Alzheimer's drugs, including Aduhelm, to patients who have participated in a qualifying clinical trial.
Lucid may also be in the spotlight after chief executive Andrew Liveris announced plans to build an electric vehicle factory in Saudi Arabia in the next three to four years.
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