U.S. stock futures showed mixed signals as investors prepared for new inflation data. Economists forecast that the annualized producer price index (PPI) for final demand in August will match July’s pace, underlining persistent inflation pressures ahead of the Federal Reserve’s critical interest rate decision next week. Meanwhile, Oracle (NYSE:ORCL) projected a blockbuster booked revenue forecast, sending shares sharply higher in pre-market trading, and Novo Nordisk unveiled plans for significant workforce reductions.
Futures Mixed
On Wednesday, U.S. stock futures oscillated near the flatline as traders digested Oracle’s earnings and awaited key inflation figures. By 03:38 ET, S&P 500 futures had risen 21 points (0.3%), Nasdaq 100 futures added 70 points (0.3%), and Dow futures remained largely unchanged.
The main U.S. indexes gained in the previous session, supported by speculation that the Federal Reserve may cut rates next week. A downward revision to U.S. employment figures for the year ending March hinted at a potential labor market cooling even before President Donald Trump imposed sweeping import tariffs in April. Following the data, bets on a Fed rate reduction of at least 25 basis points at its September 16-17 meeting remained largely unchanged, while Treasury yields, which move inversely to prices, increased.
“The [Bureau of Labor Statistics] revision strengthened the case for Fed easing, but Powell already has plenty of labor justification to cut […] and the actual number […] didn’t deviate from the rough consensus range,” analysts at Vital Knowledge said in a note.
PPI Ahead
Markets are turning their attention to the August PPI release, the first major inflation gauge for the final month of Q3. A separate consumer price index is expected on Thursday. Economists predict the PPI will show a 3.3% annualized rise, matching July’s figure.
Persistent price increases could heighten concerns that, as employment conditions soften, the Fed faces a delicate balancing act: controlling inflation while promoting maximum employment. Still, analysts at ING said the data should pose “no barrier” to a Fed rate cut, noting that policymakers have signaled a potential reduction to support the labor market, despite inflation risks.
Fears of Trump potentially encroaching on the Fed’s independence eased temporarily after a federal judge ruled that the president cannot fire Fed Governor Lisa Cook.
Oracle Shares Soar as Backlog Expands
Oracle shares jumped in after-hours trading after the company revealed a stellar booked revenue forecast for its AI-enhanced cloud unit. The stock rose more than 30% in Frankfurt trading.
Oracle now expects its Cloud Infrastructure division to surpass $500 billion in booked revenue, a sign of strong demand for its AI-driven offerings. CEO Safra Catz said the company has made popular AI reasoning models—including OpenAI’s ChatGPT and xAI’s Grok—available to customers.
Remaining performance obligations (RPO), Oracle’s key booked revenue metric, surged 359% year-over-year to $455 billion for the quarter ending August 31. Catz predicted that “several additional multi-billion-dollar” clients will be signed in the coming months.
“RPO stole the show […], reinforcing confidence in Oracle’s acceleration narrative,” analysts at Jefferies said in a note.
However, Oracle’s overall fiscal Q1 performance was mixed, with adjusted EPS of $1.47 and revenue of $14.93 billion, slightly below FactSet estimates of $1.48 per share and $15.04 billion.
Novo Nordisk to Cut 11% of Workforce
Novo Nordisk (NYSE:NVO) announced plans to cut 9,000 jobs globally as it aims to reduce costs and streamline operations for its Wegovy weight-loss and Ozempic diabetes treatments. The reductions represent roughly 11.5% of its 78,400-strong workforce, with around 5,000 positions in Denmark. Copenhagen-listed shares rose in early trading.
The company expects the restructuring to deliver annual savings of 8 billion Danish crowns ($1.27 billion) by 2026, though it anticipates one-off charges of 9 billion crowns in Q3. About 1 billion crowns in savings are projected for Q4. The savings will be reinvested into growth opportunities in diabetes and obesity, Novo said.
CEO Mike Doustdar, who assumed leadership last month, said the changes will simplify the organization and sharpen focus on diabetes and obesity, the company’s largest business segments.
Oil Prices Rise
Oil prices climbed amid geopolitical tensions in the Middle East and concerns that further restrictions on Russian crude could tighten global supply. As of 03:39 ET, Brent futures rose 0.7% to $66.86 a barrel, while WTI futures increased 0.8% to $63.10 a barrel.
Markets reacted to reports that Israel targeted Hamas leadership in Doha, raising regional tensions, as well as Trump’s push for steep EU tariffs on India and China over Russian energy imports. These tariffs, if implemented, could constrain supply if major buyers acquiesce, though both countries have indicated little intent to halt Russian purchases.
Additionally, Poland reported shooting down Russian drones during a widespread attack in western Ukraine, calling the incident an “act of aggression.”
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