Market Stability: Tech Stocks and Federal Reserve's Interest Rate Strategy

Futures linked to the S&P 500 paused after a four-day rally as investors await a key inflation report to gauge future interest rate cuts by the Federal Reserve. The Nasdaq 100 dipped due to Alphabet's decline amid DOJ considerations. Market focus is on the upcoming U.S. Consumer Price Index report.

Futures tied to the S&P 500 paused on Wednesday following four consecutive days of gains, as investors await a pivotal inflation report to understand the pace of interest rate cuts from the Federal Reserve.

The Nasdaq 100 fell by 0.1% as Alphabet's shares dropped 1.3% in premarket trading, following reports that the U.S. Department of Justice is considering options that include breaking up Google. A rebound in megacap and technology stocks has helped markets recover most losses from a recent global market downturn.

Attention is now focused on the July U.S. Consumer Price Index (CPI) report, expected to show a year-on-year inflation rate of 3%, unchanged from June. This data follows a softer-than-expected producer prices report indicating moderating inflation, though it hasn't yet met the Federal Reserve's 2% target. Federal Reserve President Raphael Bostic expressed the need for additional data before supporting interest rate cuts. In contrast, experts like Stefan Koopman from Rabobank anticipate a rate cut in September due to rising unemployment and recession precautions.

(With inputs from agencies.)