Dow, S&P 500, Nasdaq futures inch higher as inflation data looms large over

US stock futures inched higher as Wall Street awaited key reports that could shape the Federal Reserve’s next interest rate decision as well as the broader economic outlook.

Futures attached to the Dow Jones Industrial Average (YM=F) rose 0.2%. Futures attached to the benchmark S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) edged up about 0.1%.

On Tuesday, stocks hit fresh records on the heels of a revision to US job numbers that confirmed a slowdown in the labor market and investors’ conviction a rate cut is coming at the Fed’s September meeting.

In after-hours trading, Oracle (ORCL) soared despite a downbeat earnings report after its CEO said cloud revenue would skyrocket due to rising AI demand. GameStop (GME) shares also jumped after the company reported more than a 20% jump in quarterly revenue.

But even as Wall Street eagerly anticipates a reduction in rates at the Fed’s next meeting, concern that a lift in monetary policy may not be enough to sustain the stock market are beginning to emerge. Key to these worries is the status of inflation, which has sat stubbornly above the Fed’s 2% target.

The next pulse check on inflation lands Wednesday, with the release of the producer price index (PPI). The consumer price index (CPI) follows on Thursday.

The two reports will provide insight into whether rising prices present a significant stumbling block to deep or sustained interest rate cuts — and if “stagflation” poses a real threat to the economy.

Meanwhile, in corporate earnings, Macy’s (M), Campbell’s (CPB), Dollar Tree (DLTR) are set to report their results Wednesday.