US Futures Edge Higher on Inflation Data and Earnings Season

US stock futures edged higher on Monday as investors kicked off a week dominated by inflation data, Middle East diplomacy, and technology earnings.

Nasdaq 100 futures rose roughly 100 points or 0.3-0.4%, while Dow futures slipped slightly, with S&P 500 contracts gaining about 0.1%.

The cautious optimism comes after Friday's record S&P 500 close following the unexpected decline in July payrolls by 23,000.

This has reduced expectations for another Federal Reserve rate increase in September, with the probability now around 44%.

Attention turns to Wednesday's CPI reading at 8.30 am ET, which Deutsche Bank analysts see as potentially decisive for September policy pricing.

A softer reading would strengthen the case for keeping rates unchanged, while a renewed inflation surprise could quickly reverse Friday's bond-market relief.

Brent crude remains near $84 a barrel due to ongoing disruptions in the Strait of Hormuz, with Iran's agreement on new shipping lanes nearing completion but conditional on concessions from Washington.

Corporate earnings remain a strong pillar for the rally, with 86% of S&P 500 companies beating earnings estimates and 76% topping revenue forecasts through Friday.

JPMorgan raised its year-end S&P 500 target to 8,000 from 7,800 on Monday and lifted its 2026 earnings forecast to $365 a share.

The AI earnings test continues with key players like CoreWeave, Cisco, and Applied Materials set to report this week, offering fresh evidence on cloud capacity, networking demand, and semiconductor spending.