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

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

S&P 500 futures were up 0.1%, Nasdaq futures were 0.4% higher, while Dow Jones Industrial Average futures were steady.

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 0.4% higher at $79.65 per barrel.

The June Producer Price Index, scheduled for release at 8:30 am ET, is expected to hold steady with no change following a 1.1% increase in the preceding month, according to estimates compiled by Bloomberg. The July Empire State manufacturing index, slated for release at the same time, is seen coming in at 9.2 versus 5.7 previously.

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.

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