- Oil futures fell 1.9%, declining after six straight sessions of gains as investors assessed prospects for weaker global demand this year and higher U.S. crude stocks.
- Investors awaited the July producer prices figures due at 8:30 a.m. ET for clues to the Federal Reserve’s interest rate path, following benign July consumer inflation data that strengthened expectations that the Fed would hold interest rates steady at its next meeting.
- Money market participants saw a 66% chance that the Fed would hold rates steady, up from roughly even odds between a rate hike and a pause on Wednesday, according to CME’s Fed Watch tool.
- At 05:47 a.m. ET, Dow E-minis were up 128 points, or 0.24%, S&P 500 E-minis were up 12.5 points, or 0.16%, and Nasdaq 100 E-minis were up 5.5 points, or 0.02%.
- PC makers gained 4% and 1.8%, respectively, in premarket trading after earnings from China’s Lenovo beat expectations.
- Futures tied to Wall Street’s main indexes inched higher on Thursday as oil prices fell and investors awaited producer-price inflation data for clues on inflation and the Federal Reserve’s interest rate path.
- Iran and the United States remain at loggerheads over efforts to agree on a permanent end to the war in the Middle East, according to a senior Iranian source, while traffic through the vital Strait of Hormuz remained severely curtailed.
- A Dow component dropped 6% despite the networking equipment maker forecasting fiscal 2027 revenue above Wall Street expectations, while an AI chip designer slumped more than 18% after missing quarterly revenue estimates, having rallied about 24% in the last four sessions.
US stock futures experienced a slight uptick as oil prices retreated, with investors keenly awaiting the July producer-price inflation data set to be released at 8:30 a.m. ET. This data is crucial for understanding the Federal Reserve's future interest rate decisions.
The market's optimism follows benign consumer inflation data from July, which has bolstered expectations that the Fed will maintain its current interest rates during the upcoming meeting. According to the CME's Fed Watch tool, money market participants now see a 66% chance that the Fed will hold rates steady, a significant increase from the previous day's near-even odds between a rate hike and a pause.
As of 05:47 a.m. ET, futures tied to Wall Street's main indexes were up, with the Dow gaining 128 points, or 0.24%, and E-minis rising by 12.5 points, or 0.16%. This positive movement comes despite a backdrop of concerns regarding weaker global demand and rising U.S. crude stocks, which had previously pressured futures down by 1.9% after six consecutive sessions of gains.
Investors are also reacting to earnings reports, with PC makers seeing gains of 4% and 1.8% respectively, following better-than-expected earnings from China's Lenovo. However, some companies faced challenges, such as a 6% drop in a Dow component despite positive revenue forecasts, and an AI chip designer's shares slumping over 18% after missing quarterly revenue estimates.
“Oil futures fell 1.9% after six straight sessions of gains, while money markets now see a 66% chance the Fed holds rates steady. PC makers gained in premarket after Lenovo's earnings beat expectations, but an AI chip designer slumped over 18% on missed revenue.”
