Stock market news today:

U.S. stock futures edged higher Tuesday morning ahead of the release of crucial inflation data, with regional bank stocks rallying, clawing back some of their losses in the wake of the Silicon Valley Bank fallout.

Futures tied to the S&P 500 (^GSPC) added 0.5% ahead of the open, while futures on the Dow Jones Industrial Average (^DJI) advanced 0.3%. Contracts on the technology-heavy Nasdaq Composite (^IXIC) increased 0.4%.

Bond yields edged higher. The yield on the benchmark 10-year U.S. Treasury note ticked up to 3.6% Tuesday morning from 3.54% Monday. The front end of the yield curve, two-year yields rose 4.2%.

U.S. stocks finished Monday mixed as volatile trading gripped Wall Street after federal banking regulators took aggressive actions to stem the fallout of SVB’s collapse.

The Federal Reserve will conduct a review of the fallout of Silicon Valley Bank. The results will be publicly released by May 1, the central bank said on Monday. The review will be led by Michael Barr, the Fed vice chair for supervision.

“The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve,” Fed Chair Jerome Powell said in a statement.

The moves comes as Wall Street remains keen on two economic releases ahead of the next Federal Reserve’s meeting later this month. The release of the Consumer Price Index (CPI) will kick off the conversation on Tuesday. Economists expect inflation to rise 6% over the last year on a headline basis, while on a “core” basis the call is for 5.5%.

Then on Wednesday, the Commerce Department will release February’s retail sales print revealing how much was spent at stores, online, and at restaurants. Meanwhile, February’s producer-price index, which measures what suppliers are charging businesses, will be out the same day.

Investors continued to be glued to the latest headlines over the collapse of SVB Financial Group (SIVB) and the implications for the banking sector.

Bank sentiment continues to tumble as the KBW Bank index (^BKX) dropped nearly 12% in premarket trading Tuesday morning. But large-cap index members including Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) all traded higher.

Other regional bank stocks including First Republic Bank (FRC) surged 20% Tuesday morning, following a record plunge on Monday. PacWest Bancorp (PACW), Western Alliance Bancorporation (WAL), Zions Bancorporation (ZION), Regions Financial (RF) all rallied ahead of the open on Tuesday.

The question remains who will be a contender to scooping up SIVB’s remaining assets following the FDIC’s takeover. The FDIC was hoping to sell the bank’s assets on Sunday but instead created bank to store SVB’s deposits and announced that depositors would be made whole.

Meanwhile, the market will likely be “wrestling” with the Fed’s path as it has to “weigh financial stability” vs. “inflation risks,” according to the US Market Intelligence team at JPMorgan.

So far, market participants are quickly shifting their expectations over the Fed’s next move. Data from CME Group shows that over 75% of traders are expecting a 25-basis-point-rate hike at the Fed’s March meeting, while nearly 25% anticipate rates unchanged, a dramatic shift from last week.

Federal Reserve Chair Jerome H. Powell testifies before a House Financial Services hearing on

Federal Reserve Chair Jerome H. Powell testifies before a House Financial Services hearing on “The Federal Reserve’s Semi-Annual Monetary Policy Report” on Capitol Hill in Washington, U.S., March 8, 2023. REUTERS/Kevin Lamarque

In other single-stock moves, KeyCorp (KEY) advanced over 15% Tuesday after tumbling in the previous trading session. Credit Suisse Group AG (CS) shares remained down in premarket trading, while Charles Schwab (SCHW) stock moved higher.

Shares of GitLab (GTLB) plummeted over 30% after the company reported a weaker revenue forecast for the fiscal first quarter and year, missing analysts’ expectations.

On the earnings front, FedEx (FDX), Adobe (ADBE), Dollar General (DG), and Lennar (LEN) will report quarterly results this week.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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