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Futures up: Dow 0.54%, S&P 500 1.0%, Nasdaq 1.44%

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

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February CPI rises 2.8%, lower than estimates

(Updates to before markets open)

By Johann M Cherian and Pranav Kashyap

March 12 (Reuters) -

Wall Street's main indexes were set for a higher open on

Wednesday after data showed cooling inflation, although concerns

about the economic impact of U.S. President Donald Trump's trade

policies tempered optimism.

Data

from the U.S. Department of Labor showed the Consumer Price

Index rose 2.8% on an annual basis in February versus the 2.9%

increase forecast by economists polled by Reuters. On a monthly

basis, the index rose 0.2%, compared to an estimated 0.3% rise.

The core figure, which excludes the volatile food and

energy components, rose 0.2% on a monthly basis against an

expectation of a 0.3% advance. Annually, it rose 3.1%, versus an

estimated 3.2% increase.

"This data is pointing in the right direction for the

market to be really happy," said Kim Forrest, chief investment

officer at Bokeh Capital Partners.

"It's going to take a very long time in economic terms,

maybe six to nine months, to see the impact of Trump's tariffs,"

Forrest said.

Traders remain confident that the Fed will deliver its

first 25-basis-point interest-rate cut in June, according to

data compiled by LSEG data. The central bank is largely expected

to leave borrowing costs unchanged at its meeting next week.

Rate-sensitive lenders such as Bank of America ( BAC )

and Goldman Sachs ( GS ) added 1.6% and 1.9%, respectively, in

premarket trading, with growth stocks also advancing. Tesla

rose 5.9% and Nvidia ( NVDA ) gained 4.1%.

On the trade front, Trump's

25% protectionist tariffs

on all steel and aluminum imports kicked in on Wednesday,

drawing swift retaliation from Canada and the European

Commission.

Companies that integrate steel and aluminum within their

supply chains such as Ford and General Motors ( GM ) were

marginally higher, while Carrier Global ( CARR ) rose 1.2%.

At 08:46 a.m. ET, Dow E-minis were up 224

points, or 0.54%, S&P 500 E-minis were up 56 points, or

1.0%, and Nasdaq 100 E-minis were up 279.25 points, or

1.44%.

The financial markets have been upended after Trump's

unpredictable tariff strategy, with analysts warning of a

potential capital flight from Wall Street. Concerns are rife

that the new U.S. 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 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 ( GS ) 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.

Among other movers, Intel ( INTC ) jumped 5.3% after a

report said TSMC has pitched Nvidia ( NVDA ), Advanced Micro

Devices and Broadcom about taking a stake in a joint venture to

operate the U.S. chip company's factories.

The Republican-controlled U.S. House of Representatives

passed a stopgap bill to keep federal agencies funded beyond

Friday, giving markets a breather.