Wall Street indexes rose ahead of Wednesday before the release of more inflation and retail sales data, as well as the start of the corporate earnings season. Dow Jones Industrial futures rose 0.6% and S&P 500 futures rose 0.8%. Recession fears also weighed on the markets as sharp inflation is pushing consumers to curb their spending. The Federal Reserve is raising the benchmark interest rate significantly to make borrowing more expensive, a strategy that carries the risk of slowing the US economy too much and pushing it into recession. Also, the Federal Reserve will release the minutes of its latest meeting later on Wednesday, which could give Wall Street more insight into its views on inflation and the next steps. Investors and economists still expect the Federal Reserve to raise the overnight interest rate by three-quarters of a percentage point next month, marking the fourth such increase, which is triple the usual hike, and the rate will reach a range of 3.75% to 4%. In the same vein, the government will release its wholesale prices report on Wednesday, providing an update on how inflation is affecting businesses. A close report on consumer prices is scheduled for Thursday, as well as the release of September retail sales data on Friday.

The corporate earnings season will begin in earnest this week with quarterly reports from PepsiCo, Delta Air Lines, and Domino's Pizza. Banks, including Citigroup and JPMorgan Chase, will report their results. Meanwhile, on Wednesday, PepsiCo raised its full-year outlook as rising prices led to a 9% increase in third-quarter sales, where the average prices for the beverage and snack maker rose 17%.

On the other hand, the British pound weakened against the US dollar after Bank of England governor Andrew Bailey confirmed that the bank would not extend, after Friday, an emergency debt-buying plan introduced last month to stabilize financial markets. The pound fell by about 1% to just below $1.10 after Bailey’s remarks, before rising slightly. Financial markets retreated, with the currency reaching a record low of $1.03 last month after the government announced plans for tax cuts without clarifying how they would be paid for. The French CAC 40 index also rose 0.1%, while the German DAX rose 0.2%, and the British FTSE 100 fell 0.1%. The Kospi index in South Korea added 0.5% to 2202.47 after the Bank of Korea raised the key interest rate by 0.5 percentage points, against the backdrop of the US Federal Reserve raising interest rates, boosting the dollar’s value against many other currencies, including the won. The Japanese yen also fell to its lowest level in 24 years against the US dollar at 146 yen, raising expectations for intervention to support the yen following such a step in September. The dollar traded at 146.59 Japanese yen, up from 145.80 yen. The weaker yen will increase costs for both consumers and companies that rely on imports of food, fuel, and other necessities, but the greater purchasing power of foreign currencies is expected to boost tourism.