Stock futures edge up as inflation and rate worries hang over markets

U.S. stock index futures were slightly higher Tuesday morning, with September S&P 500 E-Mini futures up 0.19% and September Nasdaq 100 E-Mini futures up 0.31%. Sentiment improved after Pakistan’s defense minister said signals suggested the U.S. and Iran were close to “some sort of arrangement.”

Oil prices gave up earlier gains and were little changed after the remarks. Prices had initially climbed more than 2% after President Donald Trump issued new demands on Iran related to compensation.

Investors were watching interest rates and inflation after Cleveland Fed President Beth Hammack said several rate hikes may be needed to bring inflation back to the central bank’s 2% target. U.S. rate futures priced in a 51.9% chance of a 25-basis-point rate hike at next month’s monetary policy meeting.

The 10-year U.S. Treasury yield was at 4.71%, down 0.04 percentage points. Investors also were focused on July existing home sales data and Wednesday’s July consumer inflation report for clues on the path of rates.

Read the full story at barchart.com.