Market Snapshot: Wall Avenue heads for extra features as bond sell-off takes a breather

US stock index futures rose on Wednesday as the sell-off in bonds eased ahead of the latest inflation report due Thursday and investors absorbed another batch of earnings reports.

How are stock index futures traded?

S&P 500 futures
rose 0.8% to 4,547

Dow Jones Industrial Average Futures
rose 0.5% or 180 points to 35,532

Nasdaq 100 futures
increased by 1.1% to 14,897

Tuesday's action saw the Dow Industrials
climbed 371.65 points, or 1.1%, to close at 35,462.78, its best daily gain since January 31. The S&P 500
up 0.8% to end at 4,521.54, the best day since February 2. The Nasdaq Composite
rose 1.3% to 14,194.45.

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What moves the markets?

Investors got a breather from a recent sell-off in bonds on Wednesday. The yield of the treasury note
was last down 3 basis points to 1.922% after hitting 1.954% on Tuesday, its highest since 2019.

But investors are still eyeing the key 2% level in the 10-year, especially as key inflation data emerges for Thursday. Annual consumer price inflation is expected to rise to 7.2% in January after hitting a 40-year high of 7% in December.

Read: 'This isn't 1980': What investors expect to be the next US inflation

"The improved sentiment stems from more optimism about the reopening, while the Fed's dovish expectations and rising yields remain a serious threat to actual earnings as the key triggers behind the recent bond sell-off are still at play," Ipek Ozkardeskaya said , Senior Analyst at Swissquote, in a note to clients.

"This means there is a high risk of a sudden shift in sentiment ahead of Thursday's US inflation data," she said.

Additional earnings will be shared Wednesday with The Walt Disney Co.
and MGM Resorts International
and ridesharing operator Uber Technologies Inc.
in the spotlight after the market close, and

Read: After the 'baptism of fire', the Disney CEO is looking for a recovery

Which stocks are in focus?

shares of Chipotle Mexican Grill Inc.
Soared 6% in premarket trading after the fast-food chain more than doubled earnings to a record high in 2021 and spoke of plans for expansion.

CVS Health Corp.
The stock rose 6% after the health care and drugstore operator's profit and earnings beat expectations, despite a mixed outlook for the full year.

Mandiant Inc.
Shares surged more than 2% after the cybersecurity software and services company reported unexpected results. Shares rose during Tuesday's regular session after a report that Microsoft Corp.
was in talks to buy the company.

Lyft Inc.
Shares fell 3% after the ride-sharing operator met its target of positive Ebitda for the full year and spoke of a "solid" fourth quarter but offered a cautious guidance.

How are other assets traded?

The ICE US Dollar Index
a measure of the currency against a basket of six major peers, fell 0.2%.

West Texas Intermediate crude for March delivery

fell 0.5% to $88.90 a barrel. Gold futures for delivery in April

remained flat at $1,827.60 near Tuesday's close, which was the highest most active contract settlement since Jan. 26, FactSet data showed.

fell by 0.3%

The Stoxx 600 Europe
rose 1.5% during the FTSE 100
up 0.5%.

The Shanghai Association
rose 0.7% while the Hang Seng Index
rose 2% and Japan's Nikkei 225
1% up.

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