Stock futures little changed after June CPI falls 0.4%, easing Fed hike odds

According to CNBC, U.S. stock futures were little changed in overnight trading Tuesday after a rally sparked by softer-than-expected inflation data, with Dow futures flat and S&P 500 and Nasdaq 100 futures near the flatline. The consumer price index fell 0.4% in June from the prior month, bringing annual inflation to 3.5%, versus Dow Jones estimates for a 0.2% monthly decline and 3.8% annual inflation. The probability of a rate hike at the Federal Reserve’s July meeting fell to 17% from 42% a day earlier, according to CME’s FedWatch Tool, while traders assigned a 63% chance that rates will be a quarter- or half-percentage point higher following the September meeting. Adam Crisafulli of Vital Knowledge said the easing in prices was broad-based, though he noted inflation remains elevated and cited rising oil and AI-related inflation pressures. Investors were also looking ahead to earnings Wednesday from United Airlines, Morgan Stanley, Johnson & Johnson and BlackRock, after JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs topped analysts’ expectations Tuesday.