Stock futures were up Wednesday as investors awaited July's inflation
data ahead of the Federal Reserve's meeting in September.
Blockbuster results yesterday from CoreWeave and Super Micro Computer were fueling some of the optimism and rekindling enthusiasm for the AI trade, with Nasdaq futures rising 0.6%.
Investors' focus remains on CPI data, which could come in weaker than expected, "helped by more benign energy inputs during the relevant measurement window," Tickmill Group said.
This could strengthen the case for the Fed to keep interest rates on hold in September, it added. Nonetheless, high oil prices, energy supply disruptions and resilient U.S. consumer demand mean that a Fed rate increase remains likely in 2026.
Meanwhile, oil prices extended gains for another session as markets remained skeptical that a deal to restore shipping through the Strait of Hormuz is imminent.
Stocks to watch
CAVA rose 10% after the Mediterranean fast-food chain reported that higher customer traffic boosted its profit in the second quarter.
Cisco, StubHub, Coherent: The companies are all scheduled to report quarterly results today after the closing bell.
CoreWeave jumped over 15% in premarket trading after the cloud-computing company posted its fifth straight quarter of record revenue, fueled by sustained AI demand.
Super Micro Computer jumped more than 7% premarket after the company reported a surging profit and sales nearly doubling in its fourth quarter.
Watch For:
U.S. CPI for July; EIA Weekly Petroleum Status Report; World Agricultural Supply and Demand Estimates (WASDE); Canada Building Permits for June; Cisco Systems 4Q earnings
Today's Top Headlines/Must Reads:
- Wealth Management Has a $3 Trillion Problem: Investors Are Keeping Too Much Cash
- Why Wall Street and Nvidia Are Building an Exotic Money Pipeline for the AI Boom
- Cracker Barrel's CEO Was Plotting a Turnaround-but Opened the Door to Her Own Exit
MARKET WRAPS Forex:
The dollar was flat. The greenback faces more volatility due to inflation data and the ongoing Middle East conflict, Commerzbank said.
The euro traded steady. The currency's scope to rise against the dollar looks limited even if inflation data are lower than expected, ING said. Bonds:
Treasury yields traded steady as investors awaited inflation data for clues on whether the Fed could raise interest rates.
Energy:
In midmorning European trading, Brent crude was up 0.6%, while WTI futures rose 0.6%.
Metals:
Gold prices rose as traders awaited the release of key inflation data.
"Traders are now focusing on today's U.S. CPI print to gauge whether the recent technical breakout above $4,200 has enough momentum to carry prices towards the next major hurdle, the 200-day moving average near $4,500," Saxo Bank said.
Copper
Copper prices were higher in early trade, supported by tightening supply fundamentals, analysts say. The copper-concentrate market remains characterized by tight ore supply and weak smelting economics, Dongwu Futures said.
Iron ore
Iron ore prices were higher in early trade, thanks to a break in oversupply. Iron ore shipment arrivals at Chinese ports are expected to be stable in the first half of August while steel mills' molten iron production has rebounded, Nanhua Futures said.
TODAY'S TOP HEADLINES
Norway Oil Fund Makes Record Profit, Buoyed by Asia Tech Stock Rally
Norway's sovereign-wealth fund posted a record first-half profit, buoyed by Asian technology-stock gains, as it swung back to positive returns in the second quarter after being hit by market volatility in the first.
Norges Bank Investment Management-the arm of the central bank that manages the world's largest sovereign-wealth fund, commonly known as the oil fund-said Wednesday that its investment portfolio returned 9.4% in the first half to make a profit of 1.753 trillion Norwegian kroner ($184.70 billion) before foreign-exchange effects. This compares with a profit of 698.47 billion kroner in the year-earlier period.
AI Spending Snuffs Out Tencent's Profit-Growth Run
Tencent Holdings' double-digit earnings growth streak since 2023 ended in the second quarter amid heavier investments in artificial intelligence.
The profit slowdown came as the Shenzhen-based company, China's largest by market capitalization, said it is more than doubling its AI spending this year, targeting both foundational models and AI agents for deep ecosystem integration.
Bank of America to Deploy $250 Billion to Bolster AI and Energy Infrastructure
Bank of America said it plans to inject $250 billion into an infrastructure push that aims to boost U.S. investments in data centers, energy and critical minerals, the latest big bank to roll out flashy initiatives to enhance national competitiveness.
The second-largest bank in the nation by assets said the initiative would involve lending and investing, as well as capital markets, banking and advisory work all to support a "new wave of infrastructure investment." It said the investments could create tens of thousands jobs along the way.
Foxconn's AI Hardware Sales Drive Profit Beat
Foxconn Technology Group reported another strong quarter as it boosted production of servers and other tech hardware for the global artificial-intelligence build-out.
The earnings beat shows how far Foxconn has come in becoming a critical supplier supporting the sector's rapid growth, as hyperscalers continue to invest heavily in AI infrastructure.
Red-Hot Power Stocks Are Losing Steam
Who are the winners of the AI power race?
For some time, it seemed as though owners of existing power plants-such as Vistra and Constellation Energy-were in a great spot. With demand growth outstripping new power supply, incumbent power plants could reap higher prices for their output without putting much capital at risk. But recent regulatory changes are muddying this bullish narrative.
Wealth Management Has a $3 Trillion Problem: Investors Are Keeping Too Much Cash
Since Don Ross retired as an airline pilot a decade ago, all the financial planners he has spoken with have wanted him to invest his cash. He isn't sold.
He is keeping 85% of his portfolio in stocks and the rest in a money-market fund yielding 3.62%. Ross looked at historical bear markets and determined they typically don't last longer than three years. He keeps enough of his portfolio in cash to comfortably get himself through that period, and he sells stocks when he needs to replenish his cash pile.
Hormuz Standoff Derails Oil Supply Recovery and Deepens Demand Slump, IEA Says
Global oil demand is set for a deeper contraction this year as renewed hostilities in the Middle East and disruptions at key shipping chokepoints derail the recovery in supplies, pushing up fuel prices and weighing on consumption, the International Energy Agency said.
The energy watchdog-a group of Western nations and their allies-now expects global oil consumption to fall by 1.6 million barrels a day in 2026, compared with its previous forecast for a 1-million-barrel-a-day decline. Demand is forecast to fall by 2.8 million barrels a day in the third quarter following a 4.9-million-barrel-a-day drop in the second quarter, before returning to growth in the final three months of the year.
U.S. Strikes on Yemen Last Year Killed and Wounded Hundreds, Pentagon Finds
A series of U.S. strikes on Yemen last year killed and wounded hundreds of civilians, according to an internal Pentagon assessment that was sent to Congress on Tuesday.
The report marks the first formal acknowledgment by the Trump administration of the scale of civilian casualties during its 2025 bombing campaign against Iran-backed Houthi rebels.
Rescue Teams in Colombia Dig Through Rubble to Pull Out Quake Victims
BOGOTA, Colombia-The number of people killed in Colombia's 7.4-magnitude earthquake rose to nearly 200, as rescue crews worked feverishly across several cities and towns in the country's west to locate and dig survivors out of the rubble.
"Amid so much pain, I want to express my solidarity with the victims and their families in their suffering," President Abelardo de la Espriella told journalists in the hard-hit city of Pereira. "A tragedy like this plunges all of Colombia into mourning."
U.S. Fires on Ship Breaking Its Blockade of Iran
U.S. forces fired on a Panama-flagged ship that attempted to run the American blockade of Iranian ports early Tuesday, the U.S. military said, stepping up enforcement as the Trump administration attempts to squeeze the regime economically.
A U.S. Navy MH-60 helicopter fired two Hellfire missiles into the engine room of the M/V Vela Nova after its crew ignored warnings from American personnel working to enforce the blockade of Iran's ports, the military said. The cargo ship was trying to cross the Gulf of Oman for an unspecified Iranian port, the military said
Write to priscila.barrera@wsj.com
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