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The S&P 500 and Nasdaq finished Tuesday at fresh record highs and they will look to continue their rally this morning, as equity futures point to another higher start on Wall Street.

The overnight session did not feature anything to upset the bullish mindset, even though China reported an unexpected decrease in new loans for July. Still, the Shanghai Composite (+0.5%) advanced to its best level since late 2021 while other markets also climbed with Japan's Nikkei (+1.3%) reaching a fresh record.

Yesterday's release of the CPI report for July boosted expectations for a 25-basis point rate cut on September 17, and Treasury Secretary Bessent told Fox Business that a 50-basis point cut should be considered by the FOMC. He repeated that view on Bloomberg TV this morning, but the fed funds futures market is not pricing in a larger cut at this time.

Today's economic data was limited to the early release of the weekly MBA Mortgage Index, which jumped 10.9% after rising 3.1% a week ago, but this report does not have a history of moving the market.

The Q2 earnings season is largely in the rear-view mirror, but there are still some individual earnings movers this morning. Recent IPO CoreWeave (CRWV 135.35 -13.40 -9.0%) is on course for a lower start despite beating Q2 revenue expectations and issuing above-consensus revenue guidance for Q3 and FY25 while Cava Group (CAVA 65.11, -19.39, -23.0%) is set for a plunge to its lowest level since April 2024 after beating Q2 EPS expectations on below-consensus revenue.

Treasuries started the day in the green with longer tenors quickly recovering their post-CPI losses. The 10-yr yield is down four basis points at 4.25%, revisiting yesterday's low.