Market Watch: Inflation Data Holds Key to Fed's Next Move

U.S. stock index futures tread water, with investors maintaining caution ahead of a pivotal inflation report. The Federal Reserve's upcoming monetary policy decision hangs in the balance, with the potential for the data to influence market expectations significantly.

The Labor Department's report, anticipated to reveal moderate price increases in July, has economists expecting underlying inflation to reflect its largest gain in six months. Such data is crucial for predicting the Fed's September meeting outcome, with an 88% chance of a 25 basis points rate cut currently priced in by traders.

In market movements, a downside surprise in the CPI print might strengthen rate cut expectations. Meanwhile, key stock performances include Intel's 3% premarket rise and Hanesbrands' 47% surge following acquisition rumors. The data release comes amidst growing concerns over economic data quality post-adjustments.

(With inputs from agencies.)