U.S. stock futures were flat Wednesday morning as investors awaited a crucial report on consumer prices. The Consumer Price Index (CPI) for April is expected to significantly impact market direction due to its influence on Federal Reserve interest rates. Currently, the futures market predicts a high likelihood (over 66%) of rate cuts by September, following anticipated pauses in June and July. If other economic data indicating growth also shows weakness, investors could view this as a double positive for stocks. However, the ongoing “meme stock” phenomenon remains a factor, potentially continuing to boost the small-cap sector. Futures Performance (+/-) Nasdaq 100 -0.07% S&P 500 +0.01% Dow +0.09% R2K +0.24% In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) ticked up 0.06% to $523.62, while the Invesco QQQ ETF (NASDAQ:QQQ) traded flat at $445.94. according to Benzinga Pro data. Cues From Previous Session Stocks defied the hotter-than-expected producer price inflation numbers and advanced on Tuesday, with the upside attributable to a decline in bond yields for a third straight session. Notwithstanding the data and Fed Chair Jerome Powell’s hawkish comments, traders began to discount a rate cut after the July Federal Open Market Committee meeting. After seeing lackluster sentiment in the morning, the major averages took off by the mid-session before closing firmly in the green, with IT and real estate stocks leading the rally. The Nasdaq Composite Index closed at a fresh closing high, although it could not break above its intraday highs, while the S&P 500 and the Dow Industrials ended at their best levels in about a month-and-a-half. Small-cap stocks outperformed, benefiting from the meme frenzy. Index Performance (+/-) Value Nasdaq Composite +0.75% 16,511.18 S&P 500 Index +0.48% 5,246.68 Dow Industrials +0.32% 39,558.11 Russell 2000 +1.14% 2,085.69 Insights From Analysts: Fund manager Louis Navellier ...