Stocks may move to the upside in early trading on Tuesday, extending the upward move seen over the course of the previous session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.2 percent.
The futures advanced following the release of the Labor Department's highly anticipated report on consumer price inflation in the month of May, which showed prices edged slightly higher.
The report said the consumer price index inched up by 0.1 percent in May after climbing by 0.4 percent in April. Economists had expected prices to tick up by 0.2 percent.
Excluding food and energy prices, core consumer prices rose by 0.4 percent in May, matching the increase seen in each of the two previous months as well as economist estimates.
The Labor Department also said the annual rate of consumer price growth slowed to 4.0 percent in May from 4.9 percent in April. Economists had expected the pace of growth to slow to 4.1.
The year-over-year growth in May marked the smallest annual increase since the period ending March 2021.
The annual rate of core consumer price growth also slowed to 5.3 percent in May from 5.5 percent in April, in line with expectations.
The data is likely to add to optimism about the Federal Reserve pausing its recent interest rate increases when the central bank announces its monetary policy decision on Wednesday.
Following the release of the report, CME Group's FedWatch Tool is indicating a 97.1 percent chance the Fed leaves interest rates unchanged.
Stocks moved mostly higher during trading on Monday, adding to the modest gains posted last week. With the upward move on the day, the Nasdaq and the S&P 500 reached their best closing levels in over a year.
The major averages finished the day just off their highs of the session. The Nasdaq surged 202.78 points or 1.5 percent to 13,461.92, the S&P 500 jumped 40.07 points or 0.9 percent to 4,338.93 and the Dow climbed 189.55 points or 0.6 percent to 34,066.33.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index shot up by 1.8 percent, while Hong Kong's Hang Seng Index advanced by 0.6 percent.
The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has inched up by 0.1 percent, the French CAC 40 Index and the German DAX Index are both up by 0.3 percent.
In commodities trading, crude oil futures are jumping $1.74 to $68.86 a barrel after plummeting $3.05 to $67.12 a barrel on Monday. Meanwhile, after falling $7.50 to $1,969.70 in the previous session, gold futures are climbing $9.30 to $1,979 an ounce.
On the currency front, the U.S. dollar is trading at 139.15 yen compared to the 139.60 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0813 compared to yesterday's $1.0757.
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