Investing.com -- U.S. stock futures slipped lower Wednesday, with investors cautiously awaiting the release of the latest U.S. inflation data for more insights into future Federal Reserve monetary policy.
By 06:40 ET (10:40 GMT), the Dow Futures contract was down 45 points, or 0.1%, S&P 500 Futures traded 5 points, or 0.1%, lower and Nasdaq 100 Futures dropped 30 points, or 0.2%.
The three major Wall Street indices closed lower Tuesday, weighed by sharp losses from Oracle (NYSE:ORCL), with the computer software company notching its worst day in more than 20 years on the back of disappointing revenue guidance.
The tech-heavy Nasdaq Composite dropped 1%, while the blue-chip Dow Jones Industrial Average ended 0.1% lower and the broad-based S&P 500 fell 0.6%.
U.S. CPI data looms large
This focus Wednesday will be on the publication of the U.S. consumer price index, as investors try to gauge the likely path of U.S. interest rates over the rest of the year.
The annual headline inflation in the world's largest economy is expected to have picked up to 3.6% during the month of August from 3.2% in July, as energy prices soared, while the core reading, which strips out volatile items like food and fuel, is anticipated to have slowed to 4.3% from 4.7% year-on-year.
Recent remarks from Fed officials suggest another pause is the most likely outcome of next week's rate-setting meeting, but uncertainty still remains over what they may choose to do later on in 2023 and a substantial jump in inflation could lead to further hikes.
Apple to remain in spotlight after iPhone reveal
In the corporate sector, earnings are due from the likes of restaurant and retail chain Cracker Barrel (NASDAQ:CBRL) Old Country Store and chipmaker Semtech (NASDAQ:SMTC) Corporation.
Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) are likely to benefit from the Centers for Disease Control and Prevention’s recommendation that all Americans ages six months and older receive updated Covid vaccines from the two drugmakers.
Apple (NASDAQ:AAPL) will also remain in focus after the tech giant revealed four new iPhone models at its annual hardware refresher on Tuesday, but refrained from launching major updates to the flagship device's design or software.
Crude gains ahead of EIA inventory report
Oil prices edged higher Wednesday, near their highest levels since November 2022, boosted by ongoing supply concerns as well as a bullish demand outlook from the OPEC monthly report.
The Organization of Petroleum Exporting Countries, in a report released on Tuesday, said that oil markets will tighten further this year amid robust demand and lower production.
Additionally, the Energy Information Administration said global oil inventories were expected to fall by almost a half million barrels per day in the second half of 2023.
This overshadowed data from the American Petroleum Institute showing that U.S. crude inventories rose 1.2 million barrels last week, with the official report from the Energy Information Administration due later in the session.
By 06:40 ET, the U.S. crude futures traded 0.6% higher at $89.39 a barrel, while the Brent contract climbed 0.6% to $92.58.
Additionally, gold futures fell 0.1% to $1,933.80/oz, while EUR/USD traded 0.2% lower at 1.0736.
(Oliver Gray contributed to this item.)