Stocks Edge Higher as Inflation Cools, Oil Rises

US stock futures edged higher amid cooling inflation, with July CPI at 3.4% YoY and core CPI at 2.5%, fueling expectations for a softer Federal Reserve stance. Traders expect July PPI readings to confirm momentum, with rate-hike odds ranging roughly 36% to 50% depending on the measure. AI earnings and tech leadership have helped lift sentiment toward record levels, even as policy uncertainty persists. Analysts note the IEA projects global oil demand will contract in 2026 before rebounding in 2027, tightening the oil balance and raising market risks. Investors remain split on how much inflation data will sway the Fed’s September decision. Overall, markets hold a cautious stance as yields and the dollar stay steady while awaiting fresh inflation and policy signals.