US markets are poised for a rebound Tuesday as two key developments eased inflation concerns. The Producer Price Index rose less than expected at 0.2% month-over-month and 3.3% annually, providing welcome news ahead of Wednesday’s crucial consumer inflation report. Adding to the positive sentiment, reports emerged that the incoming Trump administration might implement tariff increases gradually rather than all at once to minimize inflationary impact. This double dose of encouraging news sparked gains across major indices, with S&P 500 futures up 0.5% and Nasdaq futures gaining 0.7%. The market response included a retreat in both the dollar and Treasury yields, while homebuilder KB Home saw its shares surge nearly 10% after strong quarterly results. However, analysts at UBS cautioned that even gradual tariff increases could still complicate the Federal Reserve’s inflation-fighting efforts.
