Inflation Fears Subside, Dow Futures Zoom

U.S. stock futures jumped Tuesday after a key inflation reading showed consumer prices rising less than expected.

Futures for the Dow Jones Industrials vaulted 124 points, or 0.4%, to 34,881.

Futures for the S&P 500 jumped 16.5 points, or 0.4%, to 4,476.

Futures for the NASDAQ Composite Index hiked 57.5 points, or 0.4%, to 15,487.50.

Apple shares were slightly higher in pre-market trading ahead of an event Tuesday where itโ€™s expected to announce new versions of the iPhone, AirPods and Apple Watch.

The August consumer price index, while still showing a significant jump in inflation, came in less than feared. August CPI jumped 0.3% month-to-month, or 5.3% from a year earlier, below the 0.4% increase and 5.4% annual gain expected respectively by economists polled by Dow Jones.

The National Federation of Independent Business will also release its latest survey on Tuesday, which will provide investors with a pulse on how small businesses are faring.

In Washington, House Democrats proposed new tax hikes to pay for the $3.5-trillion spending package. A summary from the Ways and Means Committee showed that the plan calls for top corporate and individual tax rates of 26.5% and 39.6%, respectively.

Overseas, in Japan, the Nikkei 225 index gained 0.7% Tuesday, while in Hong Kong, the Hang Seng index slid 1.2%.

Oil prices gained 56 cents to $71.01 U.S. a barrel.

Gold prices docked $1.90 cents to $1,792.50 U.S. a pound.