S&P 500, Dow futures waver as inflation report looms

US stock futures slipped into the red on Tuesday, as investors geared up for a looming consumer inflation report seen as crucial to determining the size of the first US interest-rate cut in years.

Futures on the S&P 500 futures (ES=F) and Dow Jones Industrial Average futures (YM=F) hovered below the flatline. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell roughly 0.1%.

Stocks are set to begin reversing Monday’s sharp rebound, which saw the major gauges surge over 1% as investors went post-rout bargain hunting. Volatility is stalking the markets as investors waver between hopes for a hefty 0.5% rate cut from the Federal Reserve and worries about risks of recession.

The countdown is on to August consumer inflation reading on Wednesday, which could be decisive for rate-cut expectations after the monthly jobs report left the market guessing.

Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut

With the Fed’s policy decision just days away, investors are still unsure whether a cut of 25 or 50 basis points is on the way. The CPI update and Thursday’s wholesale inflation reading are the last two inflation inputs before policymakers meet on Sept. 17.

Meanwhile, Apple (AAPL) shares edged lower after the company lost an EU court battle over a $14 billion tax bill, a day after its iPhone 16 launch disappointed on the AI side. Elsewhere in techs, Oracle’s (ORCL) stock jumped over 8% in pre-market after its earnings topped estimates, thanks to cloud services demand.