U.S. stock futures moved slightly higher on Wednesday as investors kept their attention firmly on the latest inflation report, a key piece of economic data that could influence the Federal Reserve’s next move on interest rates. S&P 500 futures rose 0.3%, while Nasdaq 100 futures gained 0.7%. Dow Jones futures also added 72 points, or 0.1%, as traders waited for the July consumer price index report.
Technology stocks provided an extra boost before the market opened. CoreWeave shares jumped 18% in premarket trading after the cloud infrastructure company reported a better-than-expected second-quarter adjusted operating income margin. Super Micro Computer also climbed 9% following strong quarterly earnings and revenue results, while U.S.-listed shares of Dutch cloud specialist Nebius gained more than 8%.
The bigger story, however, remained inflation. Economists surveyed by Dow Jones expected July’s consumer price index to increase just 0.1% from the previous month, with core inflation, which excludes food and energy, rising 0.2%. On a yearly basis, headline inflation was expected at 3.4%, while core inflation was projected at 2.5% — both still above the Federal Reserve’s 2% target.
Investors are particularly sensitive to the figures because they could shape expectations for the Fed’s September meeting. A hotter-than-expected reading could revive concerns about higher interest rates staying in place for longer, while a softer report could strengthen hopes for a more accommodative policy. Rising oil prices are adding another layer of uncertainty, with U.S. crude moving above $83 a barrel amid fading hopes for a quick reopening of the Strait of Hormuz.
Markets outside the U.S. were also showing mixed signals. European stocks traded around the flatline, with Germany’s DAX gaining while France’s CAC 40 and the U.K.’s FTSE 100 slipped. Asian markets also ended unevenly, although South Korea’s Kospi surged 3.68% and Japan’s Nikkei 225 gained 0.83%. With investors now focused on inflation and the Fed’s next decision, Wednesday’s data could set the tone for markets in the weeks ahead.
source: cnbc
