Dow Futures indicate an upward trend in anticipation of significant inflation data for July. Analysts suggest that the figures may provide a framework for understanding the narrative surrounding central bank interest rate decisions in the upcoming months. Shares of the cloud-computing firm CoreWeave has experienced a spike in revenue, driven by the burgeoning demand for artificial intelligence. However, apprehensions persist regarding the company’s capital expenditures. Meanwhile, shipping traffic in the Strait of Hormuz has reportedly declined to a one-week low amid ongoing hostilities in the Middle East.
Dow futures remained predominantly above the neutral point, as investors prepared for the impending release of crucial inflation data that may significantly influence the Federal Reserve’s monetary policy decisions for the remainder of the year. By 03:09, the Dow futures contract was broadly unchanged, while S&P 500 futures gained 13 points, or 0.2%, and Nasdaq 100 futures had climbed by 117 points, or 0.4%. The primary indices on Wall Street experienced a decline in the previous session. Traders faced significant volatility in oil prices, which fluctuated in response to contradictory developments in the Middle East conflict. Concerns have emerged that high crude prices will contribute to inflationary pressures, prompting central banks to increase interest rates as a countermeasure. Nonetheless, sentiment found some backing from a series of U.S. data points that analysts at Deutsche Bank noted “generally came in on the positive side,” including a measure of small business optimism that exceeded expectations.
Attention now turns to perhaps the main market event of the week: July’s consumer price index. The Labour Department’s closely monitored inflation metric is anticipated to decrease slightly to 3.4% from 3.5% in the year ending July. The headline gauge incorporates petrol expenses, which have remained high since the onset of the Iran war in late February, intensifying concerns regarding a surge in energy-induced inflationary pressures. Stripping out energy and food costs, so-called “core” CPI is tipped to ease to 2.5% from 2.6%. At those levels, inflation would remain significantly above the Fed’s target, analysts noted. While the central bank could choose to increase rates in an effort to curb price increases, such a move could jeopardise the broader economy, particularly a labour market that currently appears to be unstable. The Deutsche Bank analysts noted that, traditionally, the CPI does not serve as the Federal Reserve’s favoured measure of inflation; rather, that distinction belongs to the core personal consumption expenditures price index, which will not be released for another few 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.
Shares of CoreWeave experienced an increase of over 15% in after-hours trading on Wednesday, following the neocloud group’s announcement of record revenues for the fifth consecutive quarter, highlighting the surging demand for the computing power that supports artificial intelligence systems. Sales backlog, an indicator of future sales from repeat customers, rose to $104 billion, nearly twice the order book recorded in November. CoreWeave, supported by AI chip leader Nvidia, reported that it has already secured $25 billion in net new customer commitments in the current quarter. CEO Michael Intrator hailed what he described as the “strongest bookings quarter” in CoreWeave’s history. The company, which acquires advanced AI chips from Nvidia and subsequently integrates them into data centers for leasing, achieved total revenue of $2.58 billion for the June quarter, surpassing projections. However, analysts observed that CoreWeave’s capital expenditures were “elevated and ran ahead of expectations.” Customers are eagerly seeking the computing capacity provided by CoreWeave, which has compelled the company to incur significant expenditures to maintain its service offerings. Against this backdrop, CoreWeave’s net losses have increased to $1.64 billion since its public debut in March 2025.
Elsewhere, the number of vessels tracked in the Strait of Hormuz declined to eight on Tuesday, marking a one-week low, according to shipping data. The decline underscored the extent to which numerous ship operators, apprehensive about the persistent violence in the Middle East, are seeking to circumvent the narrow waterway along Iran’s southern coast. Highlighting these concerns, the U.S. and Iran-backed Houthis in Yemen both declared attacks in the region on Tuesday. The developments further quashed hopes for an imminent deal to reopen shipping activity thru the Strait of Hormuz, a vital conduit for roughly a fifth of the world’s oil before the start of the Iran war in late February. The most recent count of eight vessels fell short of the 10-day average, which stands at approximately 12, marking the lowest figure since August 5.
Brent crude futures, the global oil benchmark, were last observed trading higher by 0.6% at $89.46 a barrel. The contract has fluctuated in both directions in response to conflicting headlines. Comments from Qatar’s Foreign Ministry and Pakistan’s Defence Minister briefly fuelled optimism for a potential deal to reopen the Strait of Hormuz, resulting in a decline in prices. Brent ultimately fell to an intraday low of $86.60 a barrel. Oil prices have resumed their upward trajectory, primarily driven by reports from Iranian state media indicating that Tehran will not reopen the Strait of Hormuz until its extensive list of conditions, articulated last weekend, is fulfilled. Iran’s Secretary of the Supreme National Security Council stated that an agreement with Oman regarding the waterway would “remain a separate issue from the strait’s closure.
