Wall Street Futures Edge Higher as Markets Brace for July CPI Data That Could Tip Fed Toward Rate Hike

U.S. stock futures climbed modestly ahead of the July Consumer Price Index report due Wednesday, August 12 at 8:30 a.m. ET, with S&P 500, Nasdaq, and Dow futures all ticking upward. The inflation data carries elevated stakes after the Federal Reserve held rates steady at its July meeting at a target range of 3.5% to 3.75%, with three dissenting FOMC members voting in favor of an immediate hike.

Cleveland Fed President Beth Hammack warned earlier this week that the central bank may need to raise rates multiple times to bring inflation back under control. Economists expected headline CPI to hold roughly steady on a monthly basis, with core CPI, which strips out food and energy, forecast to rise 0.2% from June. On a year-over-year basis, core inflation was projected to ease slightly to 2.5% from 2.6%, though several Fed officials view that level as still too high.

A hotter-than-expected print could cement a September rate hike, which Goldman Sachs Asset Management described as already finely balanced heading into the report.