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Futures up: Dow 0.50%, S&P 500 0.73%, Nasdaq 0.88%

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Intel ( INTC ) jumps on report TSMC pitched JV to US chipmakers

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February CPI data due at 08:30 a.m. E.T

(Updates with analyst comment)

By Johann M Cherian and Pranav Kashyap

March 12 (Reuters) -

U.S. stock index futures rose on Wednesday, stabilizing

after a tumultuous session, as investors weighed the

implications of President Donald Trump's tariffs on base metal

imports and also awaited a key inflation report.

With Trump's

25% protectionist tariffs

on all steel and aluminum imports taking effect a month

after they were announced, the European Commission vowed

retaliatory levies from next month, making the EU the latest

trade partner to clash with the U.S. administration.

Companies such as Ford, General Motors ( GM ), Howmet

, and Honeywell, which integrate steel and

aluminum within their supply chains, remained steady in

premarket trading.

The financial markets have been thrown into disarray

from Trump's unpredictable tariff strategy, with analysts

warning of a potential capital flight from Wall Street. Concerns

are rife that the new levies could fuel domestic inflation and

possibly precipitate a recession.

The tech-driven Nasdaq entered correction

territory last week, while the benchmark S&P 500 narrowly

avoided confirming a 10% decline from its February peak in the

previous session.

"The escalation of tariff hostilities and re-rating in

tech sector valuations is causing contagion from stocks to

credit in a way not observed in a while and is stoking fears

that the economy could veer off the tracks," Societe Generale

analysts said.

The uncertainty has led businesses to scale back investments

and adjust forecasts downwards. Delta, Kohl's,

and Walmart ( WMT ) are among the latest companies to announce

forecast cuts.

Goldman Sachs became the first brokerage to lower its

2025-end target for the benchmark index to 6,200 from 6,500,

while J.P.Morgan sees a roughly 40% risk of recession, up from a

30% chance at the start of the year.

At 07:03 a.m. ET, Dow E-minis were up 208 points,

or 0.50%, S&P 500 E-minis were up 40.75 points, or

0.73%, and Nasdaq 100 E-minis were up 171.25 points, or

0.88%.

The upcoming Consumer Price Index data for February is due

to be released at 8:30 a.m. ET. Economists expect the report to

indicate cooling inflation compared to the previous month.

However, they also say the impact of tariffs may become evident

in future data releases.

Interest-rate futures point to the U.S. Federal Reserve

keeping borrowing costs unchanged until June at its meeting next

week. However, traders expect that signs of economic weakness

could force the central bank to deliver at least 75 basis points

worth of rate cuts by December.

Among top movers, Intel ( INTC ) jumped 8.5% in premarket

trading after a report said TSMC has pitched Nvidia ( NVDA ),

Advanced Micro Devices ( AMD ) and Broadcom ( AVGO ) about taking a stake in a

joint venture to operate the U.S. chip company's factories.

Nvidia ( NVDA ) rose 2.4%, Advanced Micro Devices ( AMD )

added 1.2% and Broadcom ( AVGO ) gained 1.7%.

Walmart ( WMT ) dipped 0.1% following a meeting of Chinese officials

and its representatives earlier this week. The company had asked

suppliers in China to slash prices to offset U.S. tariffs, state

media said.

The Republican-controlled U.S. House of Representatives

passed a stopgap bill to keep federal agencies funded beyond

Friday, giving markets a breather.