Investors are closely watching the July data of the Personal Consumption Expenditure (PCE) price index, due on Thursday, which is the Fed's main inflation gauge. The PCE inflation has receded to 3% by June 2022 from its peak at 7% in June 2022. The July PCE inflation is expected to rise to 3.3% and the core PCE inflation is expected to edge from 4.1% to 4.2% year-on-year. The data will shape the Fed's future decisions on interest rates. A PCE report that aligns with or falls below expectations is likely to solidify market anticipations of a Federal Reserve pause in interest rate hikes for September. This would likely negatively impact the U.S. dollar while yielding positive effects for bonds, stocks, and gold. The SPDR S&P 500 Trust (NYSE:SPY) was up 0.3% by midday Wednesday.