Key facts
- U.S. stock index futures edged higher ahead of key inflation data.
- July consumer prices data is expected to show a moderate increase.
- Money market data shows expectations are evenly split between a Fed rate hike and a pause in September.
- AI infrastructure companies reported strong earnings, boosting related stocks.
- Geopolitical tensions in the Middle East continue to impact shipping and energy markets.
U.S. stock index futures edged higher on Wednesday ahead of a key inflation report that could influence the Federal Reserve's monetary policy path. Upbeat earnings from AI infrastructure companies provided support. July consumer prices data is expected to show a moderate increase, with the CPI forecast to have risen 0.1% last month and 3.4% year-over-year. Analysts noted that while inflation may fade as energy price pressures ease, the data might not definitively guide the Fed's next move due to potential rebounds in energy prices. The situation in the Middle East remained volatile, with separate attacks on shipping reported. Inflation figures are under scrutiny due to the oil shock from the Middle East conflict, increasing the odds of interest-rate hikes by global central banks. Money market data indicates expectations are evenly split between a 25-basis-point rate hike and a pause in September. Several AI-related companies, including CoreWeave, IREN, Applied Digital, and Super Micro Computer, saw significant premarket gains following strong earnings reports and forecasts, underscoring robust AI infrastructure demand. Most megacap and growth stocks traded higher, with Nvidia rising more than 1%. Cava Group also surged after beating earnings expectations.