Inflation Report Could Tip Scales for Tech Stocks as Fed Decision Looms

The US Consumer Price Index (CPI) report is set to be released on August 12, and its impact will be felt across various markets.

Economists expect a slight cooling of inflation from June's 3.5% to around 3.4%, with core inflation expected at about 2.5%. A 'benign' report showing easing inflation could lift tech stocks like Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA), while a hot number could trigger a selloff.

Last week's weak jobs report has already pushed the Federal Reserve away from raising interest rates, and traders now expect the Fed to hold steady or possibly cut at its September meeting. The inflation report will be crucial in determining the Fed's next move.