As markets get wrecked, these are the trades working on Tuesday

As stocks sell off sharply following yet another hot inflation report for August, there are some trades working in the market despite more dismal news. August’s consumer price index increased 0.1% month over month. Economists polled by Dow Jones expected a drop of 0.1%. The news put a damper on investors’ expectations of cooling inflation and a less hawkish Federal Reserve when the central bank meets later this month. Still, funds tracking other asset classes such as Treasurys, currencies and commodities did well on the day. Here are some of the funds in positive territory and why they may be working on a down day for the markets: SPDR Bloomberg 1-3 Month T-Bill ETF The SPDR Bloomberg 1-3 Month T-Bill ETF rose marginally as yields on longer-term Treasury notes pushed higher. The fund, launched in 2007 by State Street Global Advisors, closely follows the yield and price moves of 1-month to 3-month short-term Treasury bills by tracking the performance of Bloomberg 1-3 Month U.S. Treasury Bill Index. Short-term bonds are typically more sensitive to interest-rate hikes, and the anticipation of another big increase from the Federal Reserve next week could be one positive catalyst for the ETF. The yield on the 1-month Treasury note was last down 9 basis points to 2.481% while the yield on the 3-month note rose about 10 basis points to 3.253%. Bond yields move inversely to prices. Teucrium Wheat Fund Shares of the Teucrium Wheat fund (WEAT), which tracks three different wheat futures contracts, rose about 0.4% on Tuesday. The fund is up roughly 19% this year as inflation pushes higher and wheat producers Russia and Ukraine remain at war. Surging food prices contributing to another high inflation reading for August may be a factor contributing to the fund’s Tuesday performance. On Friday, wheat closed out its best week since April, finishing up 7.2% higher and posting its third straight weekly gain since March. Wheat futures were last up to about 863 cents per bushel. Invesco DB US Dollar Index Bullish Fund The dollar index has been on a tear in recent weeks, topping fresh 20-year highs, and surged again on Tuesday amid fears of an aggressive Fed ahead. Moves in the currency market have benefited Invesco’s DB US Dollar Index Bullish Fund , with shares up 14.6% this year and 1.1% on Tuesday. The fund tracks changes within the U.S. dollar compared against a basket of six other currencies such as the euro and British pound by tracking the Deutsche Bank Long USD Currency Portfolio Index. To accomplish this, the fund establishes long positions in U.S. dollar index futures contracts. The fund typically shorts major currencies of U.S. trading partners including the euro, British pound and the Japanese yen and is largely exposed to the euro, meaning sharp moves could cause big upward or downward shifts. ProShares UltraShort 20+ Year Shares of the fund betting against long-term bonds rose 1.3% on Tuesday as yields on the 20-year and 30-year Treasury notes pushed higher amid investors’ fears of further aggressive rate hikes from the Fed. Launched in 2008, the ProShares UltraShort 20+ Year Treasury ETF aims to provide short exposure to U.S. Treasurys set to mature in 20 years or later. — CNBC’s Gina Francolla contributed reporting.