Wall Street Awaits Key Inflation Report Amid Mixed Stock Movements

Wall Street's primary stock indexes exhibited a cautious stance on Wednesday, as investors awaited a crucial inflation report that could provide insights into the pace of potential interest rate cuts from the Federal Reserve.

The July U.S. Consumer Price Index (CPI) is expected to indicate a 3% year-on-year inflation growth, consistent with June's figures. This follows a series of gains for the S&P 500 and Nasdaq, sparked by surprisingly low producer prices that suggested a moderation in inflation, despite it not yet meeting the Federal Reserve's 2% target.

Tech stocks saw mixed performance in premarket trading, with Nvidia rising by 1.5% and Google-parent Alphabet slipping by 0.9%, amid broader market recovery efforts led by rebounds in megacap and tech stocks. The Cboe volatility index remained relatively low at 18.33, highlighting decreased market uncertainty.

(With inputs from agencies.)