(Reuters) – U.S. Stock Index futures were largely flat on Tuesday, ahead of important inflation data. These key figures are likely to make the case for a 50 basis point increase in Federal Reserve interest rates in May. It is intensifying its struggle against surging prices.

Report from the Labor Department is due to be available at 8:30 am. ET will show that consumer prices increased to 8.4% during the twelve months to March from 7.9%.

Traders are betting on bigger interest rate increases this year due to a rise in commodity prices after the conflict in Ukraine, tight labor markets, and Fed policymakers’ recenthawkish remarks.

The probability of the central bank raising rates by 50 basis points at its meeting next month is 93.5% for money markets. [IRPR]

Banks that are rate sensitive such as Wells Fargo (NYSE:) & Co, Bank of America Corp (NYSE:) and Citigroup Inc (NYSE 🙂 climbed in premarket trades.

Rising Treasury yields have caused a panic in growth stocks over the past weeks. Tech-heavy Nasdaq has fallen 14.3% in the first half of this year. It is leading among all the major U.S. indices.

On concern that an aggressive Fed policy reaction to inflation could lead to economic slowdown, the benchmark reached new heights of 2.80%. These levels were last seen in late 2018. [US/]

At 06.47 a.m. ET was up 6 points or 0.02%. ET was up 2.75 points or 0.06%. ET was up 23.75 or 0.17%.