Volatile trading continues to put investors on edge, after U.S. stocks entered correction territory last week. While markets have been staging a slight recovery in recent days, the prospect of higher U.S. interest rates continues to weigh on sentiment.
Consequently, the all-important inflation data, due out at 8:30 a.m. ET, will keep markets alert, as the data could ease or aggravate the concerns over rates.
“(Wednesday) will bring the most important CPI (consumer price index) report in over 10 years, as rising inflation (which will cause higher interest rates) has become one of the biggest risks to this multi-year rally,” Tom Essaye, founder of The Sevens Report, said in a note Tuesday.
Elsewhere, mortgage applications are due to be released at 7 a.m. ET, followed by retail sales at 8:30 a.m. ET and business inventories at 10 a.m. ET.
No auctions are scheduled to take place by the U.S. Treasury Wednesday.
—CNBC’s Fred Imbert contributed to this report