The Labor Department report, due 8:30 a.m. ET, is expected to show consumer prices soared 8.4% in the 12 months to March, from 7.9% in February, as the invasion of Ukraine by Russia has pushed gasoline costs to record highs.
Traders have increased bets on bigger interest rate hikes this year, due to a spike in commodity prices due to the conflict in Ukraine, a tight labor market and recent hawkish comments from Fed policymakers.
Money markets see a 93.5% chance of a 50 basis point rate hike when the central bank meets next month. [IRPR]
Rate-sensitive banks, such as Wells Fargo & Co, Bank of America Corp and Citigroup Inc, advanced in pre-market trading.
Rising Treasury yields have sparked a rout in growth stocks in recent weeks, with the tech-heavy Nasdaq down 14.3% year-to-date, and leading the losses of all three major US indexes.
The benchmark 10-year U.S. Treasury yield hit new highs above 2.80%, levels last seen in late 2018, on unease that an aggressive policy response to inflation from the Fed could hurt economic growth. [US/]
As of 6:47 a.m. ET, Dow e-minis were up 6 points, or 0.02%, S&P 500 e-minis were up 2.75 points, or 0.06%, and Nasdaq 100 minis were up 23.75 points, or 0.17%.