Stock Futures Rise as Fed Rate Cut Bets Surge After Inflation Data

US stock futures edged higher on Wednesday as traders increased bets for a Federal Reserve rate cut in September following cooler-than-expected inflation data. The Dow, S&P 500, and Nasdaq futures all gained 0.1%, building on Tuesday's record highs for the S&P and Nasdaq after July's CPI report showed inflation rising less than forecast.

Market sentiment shifted decisively dovish as the inflation print validated growing concerns about economic softening. Circle shares plummeted in after-hours trading after announcing a 10 million share sale, while Cava tumbled after revising growth targets downward. AI infrastructure play CoreWeave bucked the trend with strong revenue despite the broader selloff.

All eyes now turn to Thursday's Producer Price Index and Friday's retail sales data for further clues on the Fed's policy trajectory. The central bank's potential pivot toward accommodation could create favorable liquidity conditions for risk assets, including cryptocurrencies.