US stock futures barely changed overnight trading on Tuesday after the Dow’s worst day since February.
Dow futures fell just 30 points. S&P 500 futures fell 0.12% and Nasdaq 100 futures fell 0.14%.
Technology stocks fell on Tuesday but eventually rebounded, fueling selling in the broader market. The Dow Jones Industrial Average lost 473 points, or 1.4%, which was hurt by losses at Home Depot, Chevron and Goldman Sachs. The Dow had its worst day since February.
The S&P 500 was down 0.9% but avoided its second straight 1% loss after falling on Monday.
The Nasdaq Composite ended the day a relative outperformer, closing just 0.1% after falling more than 2% from its session lows.
During the session, the CBOE Volatility Index, a measure of market fear derived from option prices on the S&P 500, rose to 23.73, a level not seen in two months.
“Monday’s risk-taking sell-off continued until this morning as we see red across the board,” said Brian Price, director of investment management at Commonwealth Financial Network. “Inflation seems modest lately and this has been cited as the main catalyst for the recent weakness in global equities.”
The main inflation data will be released on Wednesday at 8:30 a.m.CET. The consumer price index for April is expected to grow 0.2% from the previous month, which is an increase of 3.6% from the previous year according to estimates by Dow Jones. This jump in the headline consumer price index would be the biggest since September 2011.
The consumer price index excluding food and energy is projected to increase 0.3% in April and 2.3% over the past 12 months.
The consumer price index rose 0.6% month-on-month in March and 2.6% year-on-year, according to the Labor Ministry.
Investors are increasingly concerned about the threat of inflation. However, US Federal Reserve chairman Jerome Powell said any spike in inflation should be temporary.
Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to start a free trial today