Inflation Data Looms Large as Fed Weighs Rate Hike
The US Federal Reserve's thinking on interest rates is expected to be influenced by today's inflation data, which could temper speculation of a rate hike next month. The annual headline and core inflation rates are forecast to tick slightly lower, mirroring last week's softer July jobs numbers.
Decent demand at Tuesday's 3-year Treasury auction helped calm bond markets, with the 10-year notes coming under the hammer later today. However, rising oil prices will add pressure, with Brent crude holding steady around $90 per barrel due to ongoing tensions in Iran and the Red Sea.
In other news, US tech companies CoreWeave and Super Micro Computer reported strong second-quarter earnings, with both beating revenue forecasts. CoreWeave also upgraded its demand forecast, citing a backlog of over $100 billion in orders during the quarter.