U.S. futures waver, yields rise as traders await data

US futures drifted as investor sentiment wavers between hopes that inflation has peaked and concern that large interest-rate hikes by the Federal Reserve will hamper economic growth.

Contracts on the S&P 500 and Nasdaq 100 fluctuated between small gains and losses after the underlying gauges posted modest rallies on Wednesday. European stocks edged higher, while the MSCI Asia Pacific Index reversed earlier gains to trade lower.

Traders remain focused on US economic data, with a decline in producer prices there providing some relief after Tuesday’s consumer inflation jolt saw wagers for rate increases ratchet higher and stocks slump the most in two years. Jobs, manufacturing and retail numbers later Thursday will be parsed for clues on the strength of the economy and inflation expectations. 

“Markets seem torn between a bearish sentiment on one hand, supported by lingering macro threats in a tighter liquidity environment, and dip buyers on the other who continue to bet on the inflation peak,” said Pierre Veyret, an analyst at ActivTrades. “Most benchmarks aren’t registering strong and significant bullish corrections following Tuesday’s sell-off, but continue to trade sideways in a volatile manner, which highlights the ‘wait and see’ situation ahead of today’s new batch of US data, tomorrow’s EU CPI report and next week’s Fed decision on rates.”