US stock futures steady ahead of July inflation data

Investing.com-- U.S. stock index futures traded largely flat on Monday evening after Wall Street dipped in the regular session, as investors turned cautious ahead of key inflation data, which could shape the Federal Reserve’s near-term outlook.

S&P 500 Futures inched 0.1% higher to 6,422.75 points, while Nasdaq 100 Futures also gained 0.1% to 23,737.75 points by 20:14 ET (00:14 GMT). Dow Jones Futures traded largely unchanged at 44,069.0 points.

CPI data due on Tuesday

In the regular trading session on Monday, the S&P 500 index fell 0.3%, while the NASDAQ Composite also lost 0.3%. The Dow Jones Industrial Average ended 0.5% lower.

Last week, the tech-heavy Nasdaq touched a fresh intraday high, while the S&P 500 finished just shy of an all-time closing high.

This positive tone faces the test of key economic data this week, with the focus on the release of U.S. consumer price data for July on Tuesday.

CPI is expected to show a modest monthly rise of about 0.2%, with core CPI forecast to increase around 0.3%. 

A separate gauge of producer prices for final demand is scheduled for release on Thursday. Moreover, a metric of American retail sales and a survey of consumer sentiment are expected to be published on Friday.

The weak July jobs report at the start of the month, which also included a sharp downward revision to the numbers for June and May, has increased expectations that the Federal Reserve will cut interest rates next month.

Market participants are currently pricing in a nearly 88% chance of a rate cut in September, according to CME FedWatch.

Additionally, investors will gauge tariff-driven price pressures after the Trump administration increased duties on imports from a number of trading partners.

Trump extends China tariff truce

Trump reportedly signed an executive order extending the deadline for China tariffs by 90 days through Nov. 9. The extension comes just a day ahead of the initial Aug. 12 deadline.

In corporate news, Sinclair Inc (NASDAQ:SBGI) shares surged more than 28% in extended trading, after the U.S. TV station owner said it was reviewing its business for potential mergers or a ventures unit spinoff.

Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) were in focus following media reports suggesting both chipmakers are set to pay the U.S. government 15% of the returns they make from the sale of their artificial intelligence chips to China.

Both stocks dipped 0.3% on Monday.