6.30am: Stocks seen opening higher US markets are expected to open higher as investors eye key inflation data – scheduled for release before the start of trade – that are likely to shape the extent of the Federal Reserve’s future interest rate hikes. Futures for the Dow Jones Industrial Average gained 0.78% in Wednesday pre-market trading, while those for the broader S&P 500 index rose 0.96% and the Nasdaq added 1.1%. Markets ended mixed on Tuesday, a day after the worst day for global stocks since June 2020, as shares of technology companies regained some lost ground. The Nasdaq finished 1% higher at 11,738 after sinking 4.3% on Monday. The S&P 500 eked out a 0.25% gain to end at 4,001 but the Dow lost 0.26% to close at 32,161. “Markets have begun to stabilise over the last 24 hours following Monday’s rout, but there’s no doubt that risk appetite is still very subdued as worries about a potential recession gather pace,” commented Jim Reid, chief credit strategist at Deutsche Bank. April’s consumer price index (CPI) is expected to show year-on-year inflation of 8.1%, with a month-on-month increase of 0.2%. March’s reading of 8.5% was the fastest annual gain since December 1981. The report is due for release at 8:30am Eastern Time. “This will be a very important one for markets and the Fed, since although policymakers have strongly signalled that they’re inclined to continue hiking by 50bps (basis points) at the next couple of meetings, there is still 25/50/75bps to play for after those meetings,” Reid added. “Today’s report will help shape the early read into this and has an ability to move markets in a large manner if diverging from consensus too far.”