US stock futures showed little change as investors awaited key inflation data and earnings reports this week. The Consumer Price Index (CPI) report is expected on Wednesday, with economists anticipating a 3.4% year-over-year rise in headline CPI for July and a 2.5% increase in core CPI. A hotter-than-expected inflation reading could reignite concerns about further monetary tightening by the Federal Reserve, potentially pressuring stocks, while a softer reading might ease fears about the Fed's policy outlook.
Corporate earnings from major AI-related companies such as Applied Materials, Cisco Systems, and CoreWeave are also anticipated this week. These reports will offer insights into the performance of key sectors, particularly the semiconductor industry, which has been a significant driver of US market gains this year. The Philadelphia Semiconductor Index has risen over 70% in 2026, though it remains below its late-June peak.
Geopolitical tensions, particularly regarding Iran and the Strait of Hormuz, continue to influence market sentiment and keep inflation risks and interest rate outlook in sharp focus. Markets are currently pricing in a 44% probability of a 25 basis point rate hike in September, a decrease from 67% just a week prior. Investors are also monitoring Treasury yields and oil prices, as sustained rises could add to inflationary pressures and impact economic growth and corporate valuations.
