Stock market today: Dow, S&P 500, Nasdaq futures mixed as traders lift Fed rate hike bets ahead of key inflation data

US stock futures are moving sideways this Tuesday as traders brace for the latest Consumer Price Index report. Investors remain cautious while weighing persistent inflation concerns against a new round of geopolitical instability in the Strait of Hormuz. Oil prices continue to climb following plans to enforce a shipping blockade in the region, adding pressure to already sensitive energy markets.

Financial markets are currently pricing in a higher probability of an interest rate hike during the next Federal Reserve meeting. Governor Christopher Waller recently signaled that the central bank will treat further elevated inflation readings as a signal rather than noise, moving away from a passive approach. This stance is keeping bond traders alert as they anticipate today's data release.

Big Wall Street banks are beginning their second quarter earnings reports, and expectations are high. JPMorgan Chase delivered a massive performance, reporting a 41% jump in quarterly profits to $21.2 billion. While Jamie Dimon highlighted the resilience of the economy, he also pointed to shifting risks like geopolitical conflict and fiscal deficits that may threaten future performance.

Chip stocks remain a point of interest, particularly as the broader sector digests the recent market valuation declines. Despite the volatility surrounding companies like Nvidia and Micron, analysts maintain strong profit projections for the semiconductor industry through 2027. Market participants are monitoring these developments alongside upcoming reports from Bank of America, Goldman Sachs, and other major financial institutions.