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Update: US Equity Futures Higher Pre-Bell Amid Inflation Data, Middle East Tensions

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(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)

US equity futures were edging slightly higher pre-bell Wednesday as traders considered the latest inflation data amid the continuing tensions in the Middle East.

Dow Jones Industrial Average futures were 0.1% higher, S&P 500 futures were up 0.2%, and Nasdaq futures were 0.5% higher.

The US seasonally adjusted consumer price index, a measure of inflation, fell by 0.4% in June, compared with expectations for a 0.1% decrease in a survey compiled by Bloomberg and following a 0.5% increase in May, government data showed.

In a post on X, US Central Command said it started another wave of attacks against Iran at 6 am ET, aiming to "further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz."

President Donald Trump reiterated in a post on Truth Social that the US was reinstating a "full" blockade, "but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo." Trump also backtracked from a threat to impose a 20% levy on cargo shipped through the Strait of Hormuz, saying that the Gulf States would invest in the US instead.

Traders also digested the latest round of earnings with ASML (ASML) reporting higher Q2 earnings and sales, and Johnson & Johnson (JNJ) posted an increase in Q2 adjusted earnings and sales.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 0.4% at $85.04 per barrel and US West Texas Intermediate crude 0.5% higher at $79.72 per barrel.

The US Producer Price Index, released at 8:30 am ET, fell 0.3% in June following a 0.6% increase in May, compared with no change expected in a survey compiled by Bloomberg. The New York Federal Reserve's Empire State manufacturing index jumped to 15.6 in July from 5.7 in June, compared with expectations of a smaller increase to a reading of 9.2.

Federal Reserve Chair Kevin Warsh will testify before the Senate Banking Committee at 10 am ET, following a similar presentation Tuesday before the House.

Federal Reserve New York President John Williams, St. Louis President Alberto Musalem, and Governor Lisa Cook are slated to speak on Wednesday.

In other world markets, Japan's Nikkei closed 1.5% higher, Hong Kong's Hang Seng ended 1.4% higher, and China's Shanghai Composite finished 0.3% lower. Meanwhile, the UK's FTSE 100 was flat, and Germany's DAX index was 0.6% lower in Europe's early afternoon session.

In equities, ASML stock was up 3.2% after the company reported its Q2 financial results. Alibaba's (BABA) shares were 4.1% higher after a Bloomberg report cited a company spokesperson as saying that Apple (AAPL) would be integrating the Alibaba's Qwen AI into Chinese iPhones, iPads, and Mac operating systems. Merck (MRK) stock was up 2.3% after the company said the phase 3 trial of its therapy, Keytruda, met the primary endpoint of progression-free survival in patients with mismatch repair-deficient advanced or recurrent endometrial cancer.

On the losing side, Johnson & Johnson shares fell 2.1% after the company posted its Q2 financial results.

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Update: US Equity Indexes Rise as Cooling Inflation Eases Interest-Rate Pressure on Tech While IBM Sell-Off Restrains Dow

(Updates with index/price moves, macroeconomic data, and geopolitical news from the first paragraph.)US equity indexes closed higher on Tuesday after the steepest slide in inflation in more than six years helped lift the Nasdaq Composite and the S&P 500, while a sharp sell-off in IBM (IBM) anchored the Dow Jones Industrial Average.The tech-heavy Nasdaq advanced 0.9% to 26,107.01, and the S&P 500 climbed 0.4% to 7,543.59. The Dow Jones Industrial Average rose by less than 0.1% to 52,508.27.Interest-rate-sensitive sectors, technology and communication services, led gainers in a broad-based rally. Healthcare was the worst performer. IBM sank 25%, the most on the Dow and the S&P 500, after Q2 guidance missed expectations.Looking at gains from the top 20 companies with market capitalizations exceeding $200 billion, half were from the semiconductor industry, according to data compiled by Finviz. The top gainer was SK Hynix, up 27%, following its Nasdaq debut last Friday.The consumer price index fell 0.4% month-over-month in June, the steepest drop since April 2020, compared with forecasts for a 0.1% drop in a Bloomberg-compiled survey and a 0.5% gain in May, according to the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the 0.2% growth estimate, in line with May's growth.The year-over-year rates for overall and core CPI slowed to 3.5% and 2.6%, respectively, from 4.2% and 2.9%. Core services, excluding housing, also known as the super core, saw the biggest sequential slide since May 2020, a Jefferies note said.The probability of the Federal Reserve leaving its policy unchanged in July soared to 83% from 58% a day ago, according to the CME FedWatch tool. The likelihood of the pause continuing over September, October, and December surged.Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait of Hormuz, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."US Central Command will restart its naval blockade of Iranian ports at 4 p.m. ET on Tuesday.Front-month global benchmark North Sea Brent rose 2.2% to $85.09 a barrel, and US West Texas Intermediate was up 1.9% to $79.59 a barrel, albeit both crude types were off session highs."Resumption of tension in the Strait of Hormuz risks a reversal, but this month's [inflation] data is a step in the right direction for the Fed," Jefferies Chief US Economist said in a note.US Treasury yields fell, with the 10-year down 3.7 basis points to 4.58% and the two-year lower 7.4 basis points to 4.19%.Taking into account the weighting differences between the CPI and personal consumption expenditures baskets, the headline PCE, which is due out in a couple of weeks, is tracking a 0.3% decline month-over-month, according to a Scotiabank note. Core PCE is tracking similarly to the flat core CPI reading.

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Update: Nasdaq, S&P 500 Rise as Inflation Cools Most in Six Years, Trump Drops Strait of Hormuz Cargo Toll Plan

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Exchange-Traded Funds Higher, US Equities Mixed After Midday Tuesday

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Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH