U.S. stock futures tick higher this morning as traders adjust to expectations that the Federal Reserve will not hike rates soon. CME Group data shows a 66% chance officials hold rates steady at their next meeting, up from 45% a week ago, indicating preserves the current accommodative stance. Fed hikes may not occur this year, too.

Investors await tomorrow’s inflation data, with the producer‑price index due at 8:30 a.m. ET. Meanwhile, AI enthusiasm abroad persists; South Korea’s Kospi index gained more than 3% for a second straight day, buoyed by Samsung and SK Hynix gains. Lenovo shares surged 19% in Hong Kong after record‑high revenue, driven by robust AI infrastructure demand.

The market’s quiet stretch continues, trading volumes low as many investors are away for summer vacations, keeping volatility subdued. With few new developments in the Iran war to sway the oil market, Brent crude futures slipped to just below $88 a barrel.

Overall sentiment remains cautiously optimistic: futures higher, yields lower, AI gains overseas, and strong corporate earnings fueling the rally, while investors keep a close eye on upcoming inflation releases.