U.S. stock futures rose Wednesday, signaling a likely continuation of Wall Street’s gains after soft inflation data pushed the S&P 500 and Nasdaq Composite to all-time closing highs. Cisco Systems (NASDAQ:CSCO) is scheduled to report earnings, with analysts watching closely for its fiscal 2026 outlook. Meanwhile, Perplexity AI has made a $34.5 billion bid to acquire Google’s Chrome browser.
Futures Extend Gains
Contracts tied to the main U.S. indices climbed, suggesting a continuation of Tuesday’s rally, which was fueled by subdued inflation figures.
By 03:36 ET, S&P 500 futures rose 33 points (0.5%), Nasdaq 100 futures gained 264 points (1.1%), and Dow futures added 49 points (0.1%).
All three major indexes advanced more than 1% on Tuesday after data showed that July’s year-over-year consumer price growth matched June’s level. The numbers strengthened expectations that the Federal Reserve could cut rates at next month’s meeting, with policymakers appearing likely to favor supporting the labor market over battling elevated prices.
“Inflation was broadly in line with expectations as tariffs continue to be largely absorbed within U.S. corporate profit margins. This gives the Fed the room to respond to the weaker jobs backdrop,” analysts at ING said.
Both the S&P 500 and tech-heavy Nasdaq set fresh closing records, while short-term Treasury yields—sensitive to rate expectations—fell, reflecting the inverse relationship between yields and prices.
Cisco Earnings in Focus
Cisco Systems will kick off a series of earnings releases for companies whose fiscal quarter ended in July. Results, due after the closing bell, are expected to beat estimates, partly due to “general strength” in Cisco’s firewall business and cybersecurity subscriber base, according to Piper Sandler analysts.
“Cisco is still experiencing net-momentum into the second half, with early networking prints a good signal for the space and 2026 likely a good refresh period,” the analysts, led by James Fish, wrote.
Cisco’s fiscal 2026 guidance will be “key,” particularly after Mark Patterson replaced Scott Herren as CFO. Herren retired in July, leaving after Cisco raised its fiscal 2025 outlook, counting on artificial intelligence to support cloud customer demand for its networking gear.
Analysts also noted that Splunk (NASDAQ:SPLK), the cybersecurity firm Cisco acquired for $28 billion in 2024, will now contribute to the company’s organic results. The acquisition was Cisco’s largest ever and aimed to deepen AI integration across operations.
Perplexity AI Makes $34.5 Billion Chrome Bid
Perplexity AI has submitted an unsolicited all-cash offer of $34.5 billion to buy Alphabet-owned Google’s Chrome browser, seeking access to data from billions of users to train its AI models.
The move comes as Google faces antitrust scrutiny over its dominant search business. A U.S. judge ruled last year that Google had illegally created a monopoly, opening the door to potential remedies, including a Chrome sale. Such a step could dramatically reshape online advertising, long central to Google’s business.
Perplexity, which previously bid for TikTok US amid U.S. concerns over Chinese ownership, has not disclosed funding details. The firm was last valued at $14 billion and has raised roughly $1 billion from investors including SoftBank (USOTC:SFTBY) and Nvidia (NASDAQ:NVDA).
Ether Nears All-Time High
Bitcoin (COIN:BTCUSD) edged higher, while Ether (COIN:ETHUSD) hovered near record levels following soft U.S. inflation data. Ether surged as much as 8.5% to $4,683, approaching its November 2021 peak of $4,861, amid increased buying from corporate investors.
Several U.S.-listed companies announced plans to expand their Ether holdings this week, following strategies similar to those used by Michael Saylor’s Strategy, the world’s largest corporate Bitcoin holder. Over the past two years, Strategy has largely funded Bitcoin purchases via share issuances.
Gold Inches Up
Gold prices ticked higher in early European trading, driven by expectations of Fed easing and ahead of U.S.-Russia talks later this week. Spot gold rose 0.3% to $3,359.54 per ounce, while December futures advanced 0.3% to $3,408.22/oz by 03:35 ET.
Markets now price in over a 96% chance of a September rate cut, according to CME’s FedWatch Tool. Lower rates reduce the opportunity cost of holding non-yielding assets like gold.
Geopolitical concerns moderated gains, as traders monitor Friday’s summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, focused on the Ukraine conflict and potential ceasefire proposals.
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