(Reuters) - Futures tied to the S&P 500 paused on Wednesday after the benchmark index logged four straight days of gains as investors cautiously awaited a key inflation report for clues on the pace of interest rate cuts from the Federal Reserve.

Nasdaq 100 futures were 0.1% lower as Alphabet dipped 1.3% in premarket trading. A media report said the U.S. Department of Justice is considering options that include breaking up Google.

A rebound in megacap and technology stocks have helped markets recoup most of their losses from a global market rout earlier this month that was partly caused by data showing a surge in U.S. unemployment rate in July.

Market attention now turns to a July reading of the U.S. Consumer Price Index (CPI), due at 8:30 a.m. ET, which is expected to show headline inflation grew 3% year-on-year, same as June.

The data comes on the heels of a softer-than-expected producer prices data on Tuesday that indicated inflation continued to moderate, although it is yet to reach the U.S. central bank's 2% target.

Atlanta Federal Reserve President Raphael Bostic said he wants to see "a little more data" before he's ready to support lowering interest rates.

"Notably, inflation has undershot consensus forecasts from April through June, with both prices and wages coming in cooler than economists anticipated," said Stefan Koopman, senior macro strategist at Rabobank.

"We anticipate the Fed will cut rates in September, primarily due to the rising unemployment rate and as a precaution against a potential recession."

Traders broadly expect the Fed to begin its cycle of monetary policy easing at its Sept. 17-18 meeting but are near evenly split whether it would be a 25 bps rate cut or a more hefty 50 bps cut.

At 05:18 a.m., Dow E-minis were up 50 points, or 0.13% and S&P 500 E-minis were mostly unchanged at 5,459.25 points.

The Cboe volatility index, Wall Street's fear gauge, stayed below its long term average of 20 points for the second day at 18.37 after hitting its highest since 2020 just last week.

Among other stocks, Kellanova jumped 7% in premarket trading after a source told Reuters candy giant Mars is nearing a deal to acquire the maker of snacks such as Cheez-It and Pringles for nearly $30 billion.