CPI, Cisco Earnings, and Fed Pressure: Key Economic Releases Ahead

The upcoming week is set to bring several key economic releases and company earnings reports. On Wednesday, the US will release its consumer price index (CPI) for July, which is expected to show a 0.2% increase in prices from June's decline of 0.4%. The annual inflation rate is forecasted to ease to 3.4% from 3.5%, while core CPI is projected to rise 0.2% month-on-month after remaining unchanged in June.

The Nasdaq 100 has experienced a sharp rise over the past week, but may be vulnerable around the CPI release. A hotter-than-expected reading could increase pressure on the Federal Reserve to hike rates in September and weigh on risk assets.

In Germany, preliminary data showed consumer prices rising 0.8% month-on-month and 2.8% year-on-year in July, both above expectations. The final reading is expected to confirm these numbers, which could determine whether European Central Bank rate hikes are back on the table in September.

Cisco Systems will also report its fiscal fourth-quarter 2026 results on Wednesday, with earnings expected to rise 18.2% to $1.17 a share and revenue projected to increase 14.7% to $16.8 billion. The stock is expected to see a post-earnings move of 7.3%, with options positioning showing a bullish bias that could leave the shares vulnerable to a sell-off.