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U.S. equity futures held steady in early Wednesday trading, with markets worldwide notching modest gains amid a dip in the U.S. dollar, as investors braced for a key inflation report prior to the opening bell.

Global markets are laser-focused on the Commerce Department’s March inflation report, which is expected to show a modest easing in core price pressures set against a quickening of the headline pace. This as the economy continues to outperform and energy prices extend their year-to-date gains.

The core CPI rate is forecast at 0.3% for February and 3.8% for the year.

A faster-than-expected reading could compel markets to push back bets on a June Federal Reserve interest-rate cut and challenge the broader assumption of around three reductions between now and the end of the year. 

The Fed will also publish minutes of its March policy meeting at 2 p.m. Eastern Time in Washington, with investors looking for clues as to how central bank officials see their rate-cut projections evolving over the coming months. 

CME Group’s FedWatch suggests a 50.8% chance of a quarter-point rate cut in June, down from around 64% prior to the Fed’s March meeting. 

Treasury bond yields have risen notably over the past three weeks as Fed officials push back on rate-cut bets and employment data continue to suggest a robust labor market. Yields edged lower in overnight dealing amid reports of a massive futures bet on a softer inflation print.

Benchmark 10-year note yields were marked 3 basis points (0.03 percentage point) lower heading into the New York trading session at 4.361%, with traders also eyeing $39 billion of new notes to be sold later in the afternoon. 

Related: Inflation report will disappoint markets (and the Fed)

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.11% lower at 104.034.

A handful of stocks were also on the move in premarket trading, with Delta Air Lines  (DAL)  rising 4.4% after the carrier posted stronger-than-expected first-quarter earnings and reiterated its full-year profit forecast. 

Nvidia  (NVDA)  shares, meanwhile, slipped 1.2% after closing at a one-month low of $853.54 last night. A price-target boost from Morgan Stanley, which lifted its target by $205 to $1,000 a share, could support the stock later in the session.

Boeing  (BA)  shares extended declines, falling 0.2%, after the Federal Aviation Administration said it’s investigating whistle-blower allegations of unsafe manufacturing practices at the planemaker 

More Wall Street Analysts:

• Analyst unveils Nvidia stock price ‘line in the sand’
• Analyst revamps homebuilder stock price target before Fed rate call  
• Analysts revamp Nvidia price targets as Blackwell tightens AI market grip

On Wall Street, stocks are looking at a muted open, but with the market’s key volatility gauge, the VIX index, trading near a one-month high at $15.31, and CPI data due at 8:30 a.m. Eastern Time, big changes before the opening bell are likely.

Futures contracts tied to the S&P 500 suggest a 3-point opening-bell gain, while those linked to the Dow Jones Industrial Average are indicating a 48-point bump. The Nasdaq is called 4 points higher.

Related: JP Morgan CEO Jamie Dimon delivers stark warning on inflation, economy

In overseas markets, the Europewide Stoxx 500 was up 0.54% in early Frankfurt dealing ahead of the April 11 ECB rate decision, while the FTSE 100 added 0.62% in London.

Overnight in Asia, the regionwide MSCI ex-Japan benchmark rose 0.65%. The move up came despite a broad pullback in China stocks linked to a downgrade of the outlook of the country’s sovereign credit to negative from stable.

Japan’s Nikkei 225, meanwhile, ended 0.48% lower in Tokyo. 

Related: Veteran fund manager picks favorite stocks for 2024