Stock futures were little changed early Tuesday as investors awaited July’s inflation data, a pivotal input for the Federal Reserve’s next move. Futures tied to the Dow, S&P 500, and Nasdaq hovered near flat after a choppy stretch that saw the major indexes log modest gains Monday, led by tech and energy.

The July Consumer Price Index (CPI), due this week, is front and center. Economists expect core inflation to keep moderating on a year-over-year basis, while headline inflation could show the effect of stabilizing energy prices. A cooler print would bolster hopes for a Fed rate cut later this year; any upside surprise could revive concerns about sticky inflation and keep policy makers cautious. Traders are currently pricing in growing odds of a cut by year-end, but the path remains data-dependent.

Earnings season continues to shape the landscape. Mega-cap tech remains in focus as investors parse guidance for signs of resilient demand and disciplined spending in AI and cloud. In cyclicals, energy shares have benefited from firm crude prices, while industrials and materials have been more mixed amid uneven global growth signals. Financials are steady as higher-for-longer rate narratives support net interest margins, tempered by slower loan growth.

In bond markets, Treasury yields were stable after last week’s pullback, with the 10-year hovering as investors balance softer growth indicators against still-elevated services inflation. The dollar eased slightly, reflecting cautious risk appetite, while gold steadied near recent ranges. Oil prices held firm as supply discipline and geopolitical tensions offset concerns about demand.

Key risks to watch this week include the CPI print, updated labor market readings, and any Fed commentary that could recalibrate rate-cut expectations. For investors, the near-term setup favors quality balance sheets and durable earnings, with selective exposure to semiconductors, energy producers, and cash-generative software. Maintain diversification, keep duration risk measured in fixed income, and be prepared for volatility around the inflation release.