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The U.S. labor Department’s consumer price index (CPI) reading, due at 8:30 a.m. ET, is expected to show inflation rose 0.2% last month compared with a 0.4% rise in April, with core inflation likely to have remain unchanged at 0.4%.
The Fed will commence its two-day policy meeting later in the day, with an interest rate decision due on Wednesday, followed by Fed Chair Jerome Powell’s news conference.
Traders see a 76% chance that the central bank will hold interest rates at the 5%-5.25% range, while pricing in a 56% chance of a 25-basis-point hike in July, according to the CME Fedwatch tool.
The S&P 500 and the Nasdaq logged their highest closing levels since April 2022 on Monday, lifted by market heavyweights including Amazon.com (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA).
The benchmark S&P 500 has risen 21% from its October 2022 lows, which some investors consider points to a bull market.
At 5:26 a.m. ET, Dow e-minis were up 25 points, or 0.07%, S&P 500 e-minis were up 11.75 points, or 0.27%, and Nasdaq 100 e-minis were up 79 points, or 0.53%.
Oracle Corp (NYSE:ORCL) jumped 4.1% premarket, as the software firm topped quarterly revenue estimates and forecast an upbeat current quarter, driven by growing demand for its cloud offerings from companies deploying AI.
Apple slipped 0.8% after UBS downgraded the iPhone maker to “neutral” from “buy”.
Intel Corp (NASDAQ:INTC) gained 1.5% after the chipmaker entered in talks with SoftBank Group Corp’s Arm to be an anchor investor in its initial public offering (IPO).
Advanced Micro Devices (NASDAQ:AMD) rose 2.3% ahead of the chipmaker revealing new details about its “AI Superchip” later in the day.
Aiding sentiment, China’s central bank lowered a short-term lending rate for the first time in 10 months, to help restore market confidence in the world’s second-largest economy.
U.S.-listed shares of Chinese companies including JD (NASDAQ:JD).com , Alibaba (NYSE:BABA) Group, Baidu Inc (NASDAQ:BIDU) and Netease Inc rose between 1.9% and 4.7%.
