* Futures: Dow flat, S&P 500 up 0.15%, Nasdaq up 0.26%
* March CPI at 3.3% on annual basis, in line with
estimates
* TSMC's US shares gain after Q1 revenue beat
(Updates after inflation data)
By Purvi Agarwal and Avinash P
April 10 (Reuters) - Wall Street's main indexes were on
track for a subdued open on Friday after March inflation data
largely aligned with expectations despite persistent pressures
from the Iran war, while investors assessed the stability of the
ceasefire.
A Labor Department report showed the Consumer Price Index
rose 3.3% in March, in line with estimates, according to
economists polled by Reuters. Core CPI, which excludes volatile
food and energy components, came in slightly softer at 2.6%,
versus an expected 2.7% rise.
Traders stuck to bets that the U.S. Federal Reserve will
hold interest rates steady this year, according to data compiled
by LSEG. They were expecting two interest-rate reductions before
the conflict began.
"When paired with Thursday's PCE data, the message is clear:
inflation remains sticky - and that optimistically assumes the
energy surge proves to be a temporary headwind rather than a
lasting recalibration," said Bret Kenwell, U.S. investment
analyst at eToro.
"It should keep policymakers on pause, unless we see a more
notable deterioration in the labor market or the broader
economy."
San Francisco Fed President Mary Daly told Reuters on
Thursday that the oil shock from the Iran war would extend the
timeline on bringing inflation back to the U.S. central bank's
2% target.
The announcement earlier this week of a two-week truce
between the U.S. and Iran buoyed Wall Street, setting the S&P
500 on track for its largest weekly jump since November.
Meanwhile, the Dow was set to post its strongest gains since
June. The truce has shown signs of strain ahead of the first
round of talks, which are scheduled for Saturday.
However, markets drew comfort after Israeli Prime Minister
Benjamin Netanyahu said he was seeking direct talks with Beirut,
leading Wall Street's main indexes to close higher in the
previous session.
At 08:47 a.m. ET on Friday, Dow E-minis rose 4
points, or 0.01%, S&P 500 E-minis gained 10.25 points,
or 0.15%, and Nasdaq 100 E-minis were up 65.25 points,
or 0.26%.
Tehran and Washington have accused each other of ceasefire
violations, pointing to a fragile truce. The Strait of Hormuz, a
key waterway for global oil shipping, remains largely shut,
making markets highly sensitive to headline developments.
"Investors could be in for a fretful weekend as they wait
for indications of whether a path to lasting peace is possible.
Ahead of this, they may be tempted to hedge their bets", said
Dan Coatsworth, head of markets at AJ Bell.
A preliminary reading of the University of Michigan's
consumer sentiment survey for April is due after markets open on
Friday.
In premarket trading, U.S.-listed shares of Taiwan
Semiconductor Manufacturing ( TSM ) , the world's
largest contract chipmaker, rose 2.3% after it beat market
forecasts for first-quarter revenue.
CoreWeave ( CRWV ) shares gained 5% after it announced a
multi-year agreement with Anthropic and priced its convertible
bond offering at a premium.