06:35 AM EDT, 09/09/2024 (MT Newswires) -- US equity investors will focus on the consumer and wholesale price inflation data this week to assess the extent of forthcoming interest-rate cuts in September.

* The August Consumer Price Index and Wholesale Price Index data are due Wednesday and Thursday. According to a note from Scotiabank, the readings will be the last "major" dual mandate readings before the Federal Open Market Committee delivers its policy decision and updated forecasts on Sept. 18.

* Most estimates for headline and core inflation are set at a seasonally adjusted 0.2% increase month-over-month and will contribute toward slowing the year-over-year rates to 2.6% for headline CPI from 2.9% prior and unchanged core at 3.2%, as per the Scotiabank note. "Upside risk could come from a possible further rebound in core service price inflation."

* The readings are unlikely to tip the balance on the FOMC's first rate cut to 50 basis points from a reduction of 25 basis points, Derek Holt, head of capital market economics at Scotiabank, said in the note. "The FOMC has largely pre-committed to a cut but the tone of Fed-speak, the lack of market dysfunction, and the overall data lean toward our expectation for a quarter-point reduction."

* The probability of a 25 basis-point cut on Sept. 18 stood at 75% as of early Monday, according to the CME Group's FedWatch Tool. The remaining 25% likelihood was for a 50 basis-point drop.

* Investors will also watch moves in the CBOE's Volatility Index (VIX), often called the fear index. Late Friday, the index was trading at around 22, surging from roughly 15 at the end of the previous week. Early Monday, it was down 6.6% at the time of writing.

* Treasury yields will also be on investors' radar this week as the 10- and two-year yields touched 52-week lows on Friday following the relatively weak jobs data.

* Apple (AAPL) will kick off its annual iPhone event on Monday.

* Quarterly earnings due this week include Oracle (ORCL), Adobe (ADBE), and Kroger ( KR ) .