U.S. CPI ahead, legal win for Microsoft-Activision deal - what's moving markets

investing.com:

Investing.com -- The release of the June inflation data out of the U.S. is set to be the major focus for markets, with investors hoping to discover any clues about the Fed's future interest rate path. Elsewhere, Nvidia and Arm reportedly enter talks over the semiconductor giant becoming an anchor investor in the U.K. chip designer's planned flotation. Meanwhile, Microsoft scores a stunning victory in a U.S. court over its megamerger with «Call of Duty»-maker Activision Blizzard.

1. U.S. CPI looms large

U.S. inflation is expected to have increased at its slowest pace in more than two years in June, but stickiness in so-called «core» prices could still persuade Federal Reserve policymakers to resume its recent campaign of policy tightening.

The Bureau of Labor Statistics' consumer price index (CPI) for last month is seen rising by 3.1% annually, down from 4.0% in May. It would be the lowest level since March 2021 and a steep deceleration from the mark of 9.1% last June.

On a month-on-month basis, the figure is projected to have moved up by 0.3% from 0.1% in the prior month.

Meanwhile, the uptick in core CPI, which strips out more volatile items like food and energy, is anticipated to have cooled slightly to 5.0% yearly and 0.3% monthly.

Despite the headline number inching ever closer to the Fed's 2% target, stubborn core readings have fueled speculation that the central bank will raise interest rates later this month after pushing pause on its hiking cycle in June.

2. U.S. futures hold steady

U.S. stock futures broadly hovered around the flatline on Wednesday as investors looked ahead to the release of the all-important inflation numbers.

At 05:17 ET (09:17 GMT), Dow futures inched up by 48 points or 0.14%, S&P 500