US Inflation Data Puts Fed Rate Hike in the Balance

The markets are waiting on US inflation data, which will determine the likelihood of a Federal Reserve rate hike in September. The headline CPI is expected to be 0.2 per cent month-on-month, with the annual rate down to 3.4 per cent.

Core inflation is expected at 0.1 per cent and 2.5 per cent. A hot print will present Fed chair Kevin Warsh with an early test of his mettle. Will he follow up those tough words on inflation with action?

The markets imply a September rate hike is a coin toss, so this reading really matters. Anything up to 0.2 per cent for core and headline suggests inflation trimming back down, which pushes out the odds of a September rate hike.

CoreWeave and Super Micro Computer delivered strong earnings updates, with CoreWeave rising 15 per cent in after-hours trading and Super Micro racing 7 per cent higher.