(Bloomberg) — Wall Street was set to open stronger, as traders wagered that inflation data due later this week will provide enough support for the Federal Reserve to keep cutting interest rates in the coming months.

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Contracts on the S&P 500 Index and the Nasdaq 100 added about 0.5%, overcoming earlier disappointment over the lack of fresh stimulus measures from China. Treasury yields also steadied after a sharp rise on Monday when wagers on the size of the Fed’s November rate cut were dialed back.

“Global risk appetite remains constructive overall,” said Benoit Anne, investment director at MFS Investment Management. “The fundamental story remains strong, the US labor market is still in good shape. The direction of travel for interest rates is still going to be lower.”

In premarket trading, Super Micro Computer Inc. rose after shipment data suggested robust demand for its servers, while Honeywell International Inc. gained as the Wall Street Journal reported the industrial company plans to spin off its advanced materials division.

On the downside, US-listed Chinese shares dropped sharply, after China’s latest pledge to support its economy dashed hopes for a fresh wave of stimulus. That also weighed on Europe’s Stoxx 600 index, with China-exposed names such as luxury firm Kering SA and Burberry Plc bearing the brunt.

Focus is now turning to the US consumer inflation data, which is forecast to slow to 2.3% year-on-year from the previous 2.5% reading. Traders are pricing a rate cut of less than a quarter-point at the Fed’s November meeting, though they still see about 48 basis points of policy easing by year-end.

The inflation data is seen as especially key, given the possibility that the ongoing US hurricane season and workers’ strikes will impact this month’s jobs print.

“CPI data probably has more importance now than in prior months, as labor data is going to be more muddied going forward,” said Robert Dishner, senior portfolio manager at Neuberger Berman.

On the corporate front, big US banks kick off the earnings season in earnest from Friday, with companies’ guidance for the coming quarters seen as key.

“Now most of investors will be looking to build a 2025 outlook and getting a steer from the corporate sector on how it is thinking about the earnings picture going into next year,” said Shaniel Ramjee, senior investment manager at Pictet Asset Management.

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Commodity markets also felt the lack of fresh China stimulus, with Brent crude futures dropping about 2%.

Key events this week:

• Fed’s Raphael Bostic, Susan Collins, Philip Jefferson and Adriana Kugler speak, Tuesday

• Fed minutes, Wednesday

• Fed’s Lorie Logan, Raphael Bostic, Austan Goolsbee and Mary Daly speak, Wednesday

• US initial jobless claims, CPI, Thursday

• Fed’s John Williams and Thomas Barkin speak, Thursday

• JPMorgan, Wells Fargo kick off earnings season for the big Wall Street banks, Friday

• US PPI, University of Michigan consumer sentiment, Friday

• Fed’s Lorie Logan, Austan Goolsbee and Michelle Bowman speak, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 fell 0.5% as of 12:47 p.m. London time

• S&P 500 futures rose 0.4%

• Nasdaq 100 futures rose 0.5%

• Futures on the Dow Jones Industrial Average rose 0.2%

• The MSCI Asia Pacific Index fell 2.1%

• The MSCI Emerging Markets Index fell 2.1%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0985

• The Japanese yen rose 0.2% to 147.83 per dollar

• The offshore yuan rose 0.2% to 7.0543 per dollar

• The British pound rose 0.1% to $1.3100

Cryptocurrencies

• Bitcoin fell 0.7% to $62,587.08

• Ether fell 0.2% to $2,436.71

Bonds

• The yield on 10-year Treasuries was little changed at 4.02%

• Germany’s 10-year yield was little changed at 2.25%

• Britain’s 10-year yield declined two basis points to 4.19%

Commodities

• Brent crude fell 2.2% to $79.14 a barrel

• Spot gold rose 0.3% to $2,651.35 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao and Aya Wagatsuma.

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