U.S. equity futures traded mostly higher as investors awaited July inflation data that could influence expectations for Federal Reserve monetary policy. CoreWeave (NASDAQ:CRWV) rallied after artificial intelligence demand helped the cloud infrastructure provider deliver another quarter of record revenue, while high investment costs remained in focus. In the Middle East, shipping through the Strait of Hormuz declined to a one-week low as hopes of a near-term reopening continued to fade.
Wall Street futures advance ahead of CPI
U.S. stock futures were largely in positive territory ahead of the consumer price index release, with markets assessing how the latest inflation reading could affect the Fed’s policy path for the rest of 2026.
At 03:09 ET (07:09 GMT), Dow futures were little changed. S&P 500 futures rose 13 points, or 0.2%, while Nasdaq 100 futures gained 117 points, or 0.4%.
The advance followed a weaker previous session for Wall Street’s main indices, with volatile crude prices contributing to uncertainty. Conflicting developments in the Middle East caused oil to swing sharply, adding to fears that prolonged high energy prices could keep inflation elevated and increase pressure on central banks.
Some economic indicators offered encouragement, however. Deutsche Bank analysts said recent U.S. releases “generally came in on the positive side,” with small business optimism among the figures exceeding forecasts.
Inflation figures could shape Fed expectations
July’s CPI report is now the key focus for investors, with headline inflation forecast to slow marginally to 3.4% year on year from 3.5%.
Energy costs remain an important component of the inflation outlook. Gasoline prices have been elevated since the Iran war started in late February, raising the prospect that higher energy costs could feed into broader price pressures.
“Core” CPI, which excludes food and energy, is expected to ease to 2.5% from 2.6%.
Vital Knowledge analysts said inflation would remain substantially above the Fed’s target even if the forecasts prove accurate. While higher rates could be used to tackle persistent price growth, tighter policy could also put additional pressure on economic activity and an increasingly fragile labour market.
Deutsche Bank noted that policymakers generally favour the core personal consumption expenditures price index over CPI when assessing inflation. However, the PCE figures are not scheduled for release for another couple of weeks.
“But today’s CPI and tomorrow’s [producer price index] (where a few components feed into the PCE) will offer us an initial steer on prices in July and will help to shape the upcoming market narrative,” the analysts wrote in a note.
AI boom drives another record quarter for CoreWeave
CoreWeave shares climbed more than 15% in extended-hours trading after the company reported record revenue for a fifth consecutive quarter, supported by intense demand for AI computing capacity.
Its backlog of contracted future sales increased to $104 billion, almost double the level recorded in November. The company also reported $25 billion in net new customer commitments secured so far during the current quarter.
Chief Executive Michael Intrator called it the “strongest bookings quarter” in CoreWeave’s history.
CoreWeave’s business involves acquiring advanced Nvidia AI processors, installing them in data centres and renting the resulting computing capacity to customers. June-quarter revenue reached $2.58 billion, surpassing analysts’ forecasts.
The scale of the investment required to satisfy demand remains a key concern. Vital Knowledge analysts said capital expenditure was “elevated and ran ahead of expectations.” CoreWeave has recorded $1.64 billion in net losses since its initial public offering in March 2025 as it continues spending heavily to expand capacity.
Hormuz vessel numbers decline further
Only eight vessels were tracked through the Strait of Hormuz on Tuesday, according to shipping data reported by Reuters, marking the lowest level for a week.
Ship operators have increasingly sought to avoid the strategically important passage as violence in the Middle East continues. Fresh attacks announced by the U.S. and the Iran-backed Houthis in Yemen on Tuesday further reduced optimism that shipping through the strait could soon return to normal.
Hormuz carried around one-fifth of the world’s oil before the Iran war erupted in late February. The latest vessel count was below the 10-day average of roughly 12 and was the lowest recorded since August 5, Reuters said.
Brent crude rebounds as reopening hopes fade
Brent crude futures gained 0.6% to $89.46 a barrel after another volatile session driven by developments surrounding Hormuz.
Comments from Qatar’s Foreign Ministry and Pakistan’s Defense Minister initially encouraged hopes of progress towards an agreement to reopen the strait, briefly pushing oil prices lower. Brent fell as far as $86.60 a barrel during the session.
Those losses were subsequently reversed after Iranian state media indicated that Tehran would keep Hormuz blocked until conditions presented over the weekend were fulfilled. Iran’s Secretary of the Supreme National Security Council separately said that any agreement with Oman concerning the waterway would “remain a separate issue from the strait’s closure.”
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