Stock futures were higher Tuesday after the producer price index, the first of two major inflation reports this week, came in cooler than expected. Futures tied to the Dow Jones Industrial Average gained 132 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures climbed 0.4% and 0.5%, respectively. The producer price index, which measures wholesale inflation, increased just 0.2% in December, according to a Bureau of Labor Statistics report. Economists polled by Dow Jones had estimated a 0.4% rise. Core PPI, which excludes food and energy, was flat. Investors are now looking toward Wednesday’s consumer price index report for insights on the Federal Reserve’s next move on interest rate policy. Tuesday’s light PPI print “is stock market-friendly, because it helps to calm fears that we were on the verge of an inflation acceleration,” said Chris Brigati, SWBC chief investment officer. “All eyes are now on Wednesday’s CPI report, as it will fuel the market’s Fed-obsessed sentiment,” Brigati said. “A strong inflation number adds to this idea of no cuts in 2025, and potentially even a rate hike, while a weak inflation data point may help to calm the market’s Fed fears.” Fed funds futures trading suggests a near-certainty that the Fed will hold steady on interest rates at the conclusion of its two-day meeting later this month. Markets pricing also suggests an 79% chance of rates staying at their current target range of 4.25%-4.5% in March, according to the CME FedWatch Tool. On the earnings front, banking behemoths will kick off fourth-quarter earnings season this week, with JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo posting results on Wednesday. Morgan Stanley and Bank of America are slated to report on Thursday. Treasury yields pulled back slightly Tuesday as wholesale prices rose less than expected in December. The 10-year yield fell around a basis point to 4.797% after hitting a fresh 14-month high in the previous session. The 2-year Treasury yield was about 2 basis points lower at 4.384%. Asia-Pacific markets mostly rose Tuesday after a mixed session on Wall Street that saw the Dow soar and the Nasdaq slip as investors rotated out of tech stocks. Hong Kong’s Hang Seng index was up 1.9% in its final hour, while mainland China’s CSI 300 climbed 2.63% to end the day at 3,820.53. This is its largest one-day gain since Nov. 7. Japan’s markets were the only outlier, with the Nikkei 225 dipping 1.83% to close at 38,474.30. The Topix fell 1.16% to 2,682.58. Both indexes extended their four-day losing streak. Japan’s 40-year government bond yield rose to an intraday high of 2.774, its highest on record since 2007, LSEG data showed. South Korea’s Kospi closed up 0.31% to 2,497.40 while the small-cap Kosdaq added 1.39% to end the day at 718.04. Australia’s S&P/ASX 200 closed 0.48% higher at 8,231, breaking a three-day losing streak. Oil prices eased on Tuesday but remained near four-month highs as the impact of fresh U.S. sanctions on Russian oil remained the market’s main focus, ahead of U.S. inflation data this week. Brent futures slipped 61 cents, or 0.8%, to $80.40 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 60 cents, or 0.8% to $78.22 a barrel. Prices jumped 2% on Monday after the U.S. Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that trade oil as part of Russia’s so-called “shadow fleet” of tankers. Gold prices rose on Tuesday, helped by a softer U.S. dollar and inflationary risks posed by President-elect Donald Trump’s potential tariff policies, which could influence the pace of Federal Reserve monetary policy easing this year. Spot gold rose 0.2% to $2,668.00 per ounce. U.S. gold futures gained 0.1% to $2,680.10.