US futures were little changed after the CPI release, as inflation data broadly matched expectations.
Headline CPI rose about 0.3% month-on-month and 2.4% year-on-year, in line with forecasts. On a non-adjusted basis, the CPI was up 0.267% on the month, up from 0.171% in January.
Core inflation rose 0.2% month-on-month and 2.5% year-on-year, also in line with consensus. Unadjusted housing CPI rose 0.216% on the month, down from 0.295%.
The largely unchanged reading suggests that underlying price pressures remain intact to the recent rise in energy prices.
Dow futures were down 0.3%, while S&P 500 and Nasdaq futures were down about 0.15%.
U.S. futures signaled a cautious opening for Wednesday trading on Wall Street, ahead of the release of U.S. inflation data, as a surge in shipping attacks in the Strait of Hormuz kept oil prices higher and nerves frayed in global markets.
The Dow Jones, S&P 500 and Nasdaq futures were all down about 0.1% to 0.15% ahead of the February consumer price index release.
European stocks were under pressure, with London’s FTSE 100 down 0.9% and Germany’s DAX down 1.4%, led by exporters, defense stocks and miners.
It’s hard for stocks to keep up with bond market volatility at unprecedented levels, said XTB analyst Kathleen Brooks, “We’re living through a period of high volatility right now.”
Oil prices are back on the rise, with WTI up more than 3% to $86.63 a barrel after another ship in the Strait of Hormuz was hit by a missile overnight, forcing its crew to evacuate.
Saudi Arabia said it had intercepted seven drones targeting a strategic oil field, while the US said it had destroyed 16 Iranian minesweepers in the waters yesterday.
If Gulf shipping lanes remain unsecured, Brooks warned that the impact of inflation extends beyond oil, with fertilizers, food and industrial goods all at risk.
Agricultural commodity prices have already moved sharply, with cocoa up nearly 20% this month, and coffee and wheat both up about 5%.
In individual stock news, Oracle shares were up about 10% on the back of the overnight earnings beat.
