Investors await July US inflation data, expected to show annual rate cooling to 3.4%, influencing Fed rate decisions.
US stock futures showed mixed movements early Wednesday, with Dow Jones futures steady near 53,890 while S&P 500 and Nasdaq 100 futures edged up 0.18% and 0.48%, respectively. Caution prevailed as traders awaited the July Consumer Price Index report, a key input for Federal Reserve policy.
The annual US inflation rate is projected to slow to 3.4% in July, down from 3.5% in June, continuing a decline from May’s 4.2% peak. Month-over-month CPI is forecast to rise 0.1%, reversing June’s 0.4% drop. Markets remain split on a potential 25-basis-point Fed rate hike in September.
Uncertainty over the Fed’s path has kept commodities under pressure, with strategists noting that tighter financial conditions could weigh on commodity-linked assets. Oil price gains have fueled hawkish expectations, though market odds for a September hike recently dipped below 50%.