The Market Brief

U.S. futures near flat following a pause in the benchmark rally the day before, as stronger-than-expected wholesale inflation in the U.S. dampened hopes for steep interest rate reductions.

Impact Snapshot

• 🟥 Retail Sales - 8:30am

• 🟥 Consumer Sentiment - 10:00am

• 🟥 Inflation Expectations - 10:00am

Macro Viewpoint

Index futures fell in early premarket yesterday after investors slightly scaled back their expectations for a Federal Reserve rate cut in September.

The shift came on renewed inflation concerns following a stronger-than-expected U.S. PPI report. Core CPI inflation has risen back above 3%, while PPI inflation is now at its highest level since March 2022.

Meanwhile Institutional investors’ equity allocation rose to 54.8% in July, the highest since the early months of the 2008 Financial Crisis.

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