Futures higher after Wall St slumps; Lyft's guidance error - what's moving markets

investing.com:

Investing.com -- U.S. stock futures tick up after a negative day on Wall Street fueled by a hotter-than-predicted U.S. inflation data that led markets to recalibrate their bets on Federal Reserve interest rate cuts. Lyft (NASDAQ:LYFT) shares go for a bumpy ride following an erroneous press release from the ride-hailing group, while Sony (NYSE:SONY) confirms a plan to list its financial services division.

1. Futures edge higher

U.S. stock futures advanced slightly on Wednesday, suggesting a small rebound on Wall Street after equities notched their worst day so far this month following a stronger-than-anticipated U.S. inflation reading.

By 04:59 ET (09:59 GMT), the S&P 500 futures contract had added 21 points or 0.4%, Nasdaq 100 futures had risen by 110 points or 0.7%, and Dow futures had ticked up by 94 points or 0.3%.

The main indices in New York all tumbled in the prior session, with the benchmark S&P 500 dropping by 1.4%, the tech-heavy Nasdaq Composite losing 1.8%, and the blue-chip Dow Jones Industrial Average dipping by 1.4%. Traders were reacting to data on Tuesday which showed that overall U.S. consumer price gains were hotter than economists had predicted in January, pointing to a lingering stickiness in inflationary pressures that further dashed hopes for an imminent interest rate cut by the Federal Reserve.

Analysts at ING said the release was «uncomfortable reading» for the Fed. The U.S. central bank has made defeating price growth one of the main targets of an aggressive tightening campaign, but inflation remains stubbornly above its stated 2% target.

Markets all but erased their previous bets for a 25 basis point reduction at the Fed's March policy meeting and lowered the chances of one in May. U.S.