U.S. Stock Futures Mixed as Traders Await Key Inflation Data

U.S. stock futures showed mixed results as traders anticipated the forthcoming producer price index (PPI) data, which is expected to provide insights into the Federal Reserve's interest rate decisions. Home Depot's shares dipped sharply following a downward adjustment to its profit forecast. Other key indicators, including CPI data and retail sales, are also in focus.

U.S. stock index futures experienced mixed movements on Tuesday while traders awaited key producer price index (PPI) data, which could shed light on the Federal Reserve's future interest rate direction. Home Depot's shares dropped after the company reduced its full-year profit forecast, affecting market sentiment.

Economic indicators are set to take center stage before the market opens, with the PPI reading expected to show a moderation in inflation to 2.3% year-over-year for July. Consumer price index (CPI) data and retail sales figures slated for later in the week are also on investors' radar.

Traders remain divided between expecting a 25- or 50-basis point interest rate cut by the Federal Reserve in September, according to CME's FedWatch Tool. Meanwhile, Wall Street’s fear gauge, the CBOE Volatility Index, remained elevated at 20.66 points.