US Stocks-S&P 500, Dow futures attempt recovery ahead of inflation report

At 6:53 a.m. ET, Dow E-minis YMcv1 were up 102 points, or 0.19%, and S&P 500 E-minis EScv1 were up 4.5 points, or 0.06%. Nasdaq 100 E-minis NQcv1 were down 72.5 points, or 0.25%.

"While additional hikes could create periods of volatility, history suggests that strong economic fundamentals can help offset the headwinds from higher rates," said Jeff Buchbinder, chief equity strategist for LPL Financial.

"As long as economic growth remains intact and recession risks stay contained, equity markets have historically been able to move higher even in a rising-rate environment."

Equities have also come under pressure from elevated yields on risk-free U.S. Treasuries. The Treasury Department said on Wednesday it would buy up to $6 billion in longer-dated Treasury bonds as part of an effort to keep yields under control.

However, the yield on the benchmark 10-year U.S. Treasury US10YT=RR was at 4.8508%, its highest since 2023. "It's early days. But markets may be telegraphing to (Treasury Secretary Scott) Bessent that it will be tough for him to have meaningful control over long-end rates," ING strategists wrote.