By Liz Moyer
Investing.com -- Stocks tumbled after a worse than expected report on August inflation and about a week before the Federal Reserve's next policy meeting.
Investors had hoped that the reading for last month would prove convincingly that inflation had peaked and was heading lower. While it moderated slightly from July, it still remained strong, and investors concluded from the number that the Fed would continue to act aggressively with interest rate increases.
The market expects another 0.75 percentage point increase next week to match July and June. But some are even predicting a full 100-basis-point increase. The Fed has said it is determined to push inflation, running near 40-year highs, back to its 2% target.
Producer prices come out again tomorrow morning, providing another view on inflation.
Stocks had been rallying into Tuesday's trading on the hopes for a less aggressive Fed. Now investors will wait to see if tech stocks can mount a comeback rally after their big swoon.
Here are three things that could affect markets tomorrow:
1. Producer prices
The producer price index for August is due out at 8:30 ET (12:30 GMT). Analysts expect the top line year-over-year number to be 8.8%, which would be down from 9.8% the prior month. For the month, the expectation is for a drop of 0.1%. Core PPI's annualized expectation is for a gain of 7.1%, from 7.6% the prior month.
2. Crude inventories
Crude oil inventories are due out at 10:30 ET. Analysts expect to see a build of 0.883 million barrels. Oil prices have fallen to below $90 a barrel in recent weeks.
3. Biotech spotlight
The White House will host a biotech summit on Wednesday as part of President Joe Biden's push to invest in treatments that aim to cure cancer in the next 25 years.