Inflation Report Looms Large Over US Markets

The US is set to release its consumer price index (CPI) report, which could influence Federal Reserve thinking and bond markets.

While annual headline and core inflation rates are expected to tick slightly lower, the report may not have a significant impact on speculation of a Fed rate hike next month, with markets currently priced 50-50 on that outcome.

The recent rise in oil prices will add pressure on inflation, but this won't be captured in July's consumer inflation numbers. The price of Brent crude has been kept high due to the ongoing impasse in Iran talks and attacks by the Iran-backed Houthis in the Red Sea.

However, some tech companies have reported positive earnings, with CoreWeave surging 15% after beating second-quarter revenue forecasts and upgrading its demand forecast. Super Micro Computer also jumped 7% after its sales forecast beat estimates.