Wall Street Waits on Inflation as Futures Edge Higher

​Futures Tread Carefully
U.S. stock futures wobbled midweek as traders kept their eyes glued to the Fed’s next move. Dow contracts slipped slightly, while the S&P 500 and Nasdaq futures managed modest gains, just enough to keep optimism alive.

Records Before the Pause
Tuesday’s session was a high note, with major indexes notching fresh records after job data revisions confirmed the labor market is cooling. That only cemented Wall Street’s conviction: the Fed is lining up a rate cut at its September meeting.

Big Names, Big Moves
After hours, Oracle shares rocketed higher. Why? Not because of earnings — those were a miss — but thanks to bold promises from the CEO that cloud revenue tied to AI demand will soar. GameStop also joined the party, jumping more than 20% on stronger revenue.

The Inflation Test Ahead
Despite the buzz, a shadow looms: inflation. Investors know rate cuts won’t mean much if prices refuse to budge. Inflation has been stuck above the Fed’s 2% target, raising fears of stagflation — the nightmare combo of stagnant growth and stubborn inflation.

Data Drop Countdown
The first big test comes with Wednesday’s producer price index (PPI) release, followed by the consumer price index (CPI) on Thursday. Together, these reports will set the tone: are deeper rate cuts in play, or is the Fed about to get cold feet?

Earnings Still Matter
Corporate earnings are also in the mix. Macy’s, Campbell Soup, and Dollar Tree are on deck with fresh results — giving investors another lens on whether consumers are holding up under inflation’s weight.

Meanwhile, Robinhood Gets Social
In side news, Robinhood shook things up by announcing “Robinhood Social,” a copy trading feature that lets users follow and manually mirror big-name investors. Unlike rival platforms, it will require verified accounts and proof of real positions — a move clearly designed to ease regulators’ nerves.

The Bottom Line
​Wall Street is walking a tightrope. Stocks may be brushing record highs, but the inflation prints over the next 48 hours could tip the balance — making or breaking the Fed’s path to rate cuts.
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