As the benchmark index sees four straight days of gains, futures tied to the stock market pause on Wednesday, with investors eagerly awaiting a key inflation report for insights into potential interest rate cuts from the Federal Reserve.
Alphabet (NASDAQ:) saw a 1.3% dip in premarket trading, following a media report suggesting the U.S. Department of Justice is contemplating breaking up Google.
Despite a recent global market rout, a rebound in megacap and technology stocks has largely recovered losses, with attention now shifting to the upcoming U.S. Consumer Price Index (CPI) reading for July. The data, expected to show 3% year-on-year growth in headline inflation, could provide further direction for market movements.
While the Atlanta Federal Reserve President remains cautious about interest rate cuts, economists anticipate a rate cut in September due to rising unemployment rates and recession concerns.
Traders are divided on the potential magnitude of the rate cut, with expectations split between a 25 bps cut and a more substantial 50 bps cut at the Fed's upcoming meeting in September.
As of 05:18 a.m., Dow E-minis were up 0.13%, with S&P 500 E-minis remaining mostly unchanged. The Cboe volatility index, a measure of market fear, has stabilized below its long-term average after a recent spike.
In other news, Kellanova surged 7% in premarket trading amid reports of candy giant Mars nearing a deal to acquire the snack maker for nearly $30 billion.
Overall, the stock market remains cautiously optimistic as investors look to navigate uncertain economic waters, with the upcoming inflation report serving as a key driver for future market movements.