Futures Rise, Dollar Erases Gain on Inflation Data: Markets Wrap

• Nasdaq contracts outperform as prices rose less than expected
• Treasury yields fluctuate after data; crude oil edges higher

U.S. equity futures turned higher and the dollar erased a gain after a key measure of American consumer prices rose less than expected in February. Treasuries fluctuated.

S&P 500 contracts jumped as the core consumer price index increased 0.1% from a month earlier and 1.3% from the prior year, suggesting broader inflationary pressures remain tame. GameStop Corp. extended its recent resurgence after more than doubling in a week.

The Stoxx Europe 600 Index climbed modestly amid gains in energy and real estate shares. Adidas AG advanced after the sportswear makersaidit’s doubling down on e-commerce and sustainable materials, while Just Eat Takeaway.com NV climbed after announcing it expects a further acceleration of order growth in 2021.

While Tuesday’s pullback in Treasury yields spurred arushinto stay-at-home winners, the picture is less clear today. Congress is poised to send the $1.9 trillion Covid-19reliefplan to President Joe Biden for his signature, while vaccinations are picking up amid further signs of economic recovery. Still, today’s inflation data suggests price pressures remain subdued.

The rising trend in bond yields is consistent with economic growth expectations, said Lauren Goodwin, portfolio strategist at New York Life Investments. That backdrop still favors cyclicals over defensive assets and “supports equities over bonds, and a weaker U.S. dollar,” she said.

Elsewhere, oil edged higher. The Australian dollarfellafter the central bank governorsuggestedmarkets may be getting ahead of themselves by pricing in an interest-rate increase within the next couple of years.

Here are some key events to watch:

• EIA crude oil inventory report is due Wednesday
• The U.S. government auctions 3-, 10- and 30-year Treasuries this week.
• The European Central Bank holds its monetary policy meeting and President Christine Lagarde is set to do a briefing Thursday.

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index increased 0.3% as of 8:46 a.m. New York time.
• The Stoxx Europe 600 Index climbed 0.3%.
• The MSCI Asia Pacific Index gained 0.4%.
• The MSCI Emerging Market Index rose 0.8%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro was little changed at $1.1904.
• The British pound was little changed at $1.3894.
• The onshore yuan was little changed at 6.508 per dollar.
• The Japanese yen weakened 0.1% to 108.55 per dollar.

Bonds

• The yield on 10-year Treasuries rose two basis points to 1.55%.
• The yield on two-year Treasuries increased less than one basis point to 0.16%.
• Germany’s 10-year yield declined one basis point to -0.31%.
• Britain’s 10-year yield fell one basis point to 0.719%.
• Japan’s 10-year yield climbed less than one basis point to 0.128%.

Commodities

• West Texas Intermediate crude gained 1.1% to $64.70 a barrel.
• Brent crude increased 1% to $68.18 a barrel.
• Gold strengthened 0.1% to $1,718.61 an ounce.