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The stock market seems to be experiencing some mixed action ahead of key events, with the S&P 500 and Nasdaq extending their gains thanks to strength in tech stocks, while the Dow Jones struggled, weighed down by a few underperformers. Oracle’s (ORCL) surge, driven by its strong earnings and partnership with Amazon Web Services, highlights the continued optimism around tech, but Apple’s (AAPL) 1.6% decline following its legal setback serves as a reminder that even the biggest names can face challenges.

Investors are clearly focused on the upcoming CPI report, which could offer crucial insights into the Federal Reserve’s next move. The market is largely betting on a 25bps rate cut next week, but there’s still some speculation around a more substantial 50bps cut, depending on how the inflation data plays out. The comments from Fed officials like Christopher Waller and John Williams suggest that the Fed is ready to lower rates, but they’re closely watching the economic data to determine the size of the cut.

The dollar’s strength and the decline in Treasury yields reflect the market’s expectation that rate cuts are on the way, though the exact magnitude remains uncertain. With the August CPI and PPI reports coming in the next couple of days, those data points will likely set the tone for both the Fed’s decision and the market’s reaction.

Overall, the market’s attention is divided between these key economic data releases and the ongoing political developments, such as the debate between Kamala Harris and Donald Trump, which could also have broader implications for market sentiment.

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