U.S. stock futures moved higher Thursday as investors prepared for the release of key inflation data, which could influence the Federal Reserve’s upcoming policy decisions. Meanwhile, the European Central Bank is expected to keep interest rates steady in its policy announcement later today. Adobe (NASDAQ:ADBE), the company behind Photoshop and Acrobat Pro, will also attract attention when it reports quarterly earnings after the closing bell.
Futures Show Modest Gains
By 03:10 ET, Dow futures were up 35 points, or 0.1%, S&P 500 futures rose 8 points, or 0.1%, and Nasdaq 100 futures increased by 39 points, or 0.2%. On Wednesday, Wall Street’s main indices ended mixed, reflecting a strong earnings report from AI-powered cloud software firm Oracle and a softer-than-expected rise in U.S. producer prices, which fueled expectations for a near-term Fed rate cut.
Oracle shares surged 36% in a single session—their largest one-day gain since 1992—pushing its market capitalization close to the $1 trillion mark. In contrast, the Dow Jones Industrial Average fell 0.48%, while the S&P 500 and Nasdaq Composite closed at record highs.
Consumer Price Index in Focus
Attention now turns to August’s consumer price index, a crucial measure of inflation. Economists expect a 2.9% year-on-year rise, up slightly from 2.7% in July. If confirmed, the Fed could face the challenge of balancing its dual mandate: supporting a cooling labor market while managing persistent inflation around its 2% target.
However, recent data showed a surprise decline in U.S. factory-gate prices in August, particularly for goods exposed to tariffs, suggesting inflation pressures may be contained. Fed officials, including Chair Jerome Powell, have signaled a willingness to prioritize labor market support, meaning a rate cut could encourage investment and hiring, albeit with potential inflationary risks.
ECB Rate Announcement
Before the Fed’s September 16–17 meeting, the European Central Bank will release its own decision Thursday. The ECB is widely expected to leave borrowing costs unchanged at 2%, though debate between rate-hike skeptics and supporters of easing is expected to be lively.
Analysts note that prior hawkish remarks by ECB President Christine Lagarde and stronger-than-expected inflation and growth since the last meeting have tempered expectations for major moves. The central bank is likely to maintain its policy while offering limited guidance on future rates.
Adobe Earnings
Adobe headlines the earnings calendar as it reports after the bell. Analysts expect the software giant to post fiscal Q3 earnings per share of $5.18 on revenue of $5.91 billion. Despite raising its annual guidance in June, Adobe faces potential headwinds from cyclical market conditions and questions about when AI-driven initiatives will begin generating significant returns.
Oil Prices Slip
Crude prices eased Thursday, retracing earlier gains driven by geopolitical tensions in Russia and the Middle East. At 03:36 ET, Brent futures fell 0.1% to $67.40 per barrel, and West Texas Intermediate dropped 0.2% to $63.56 per barrel.
U.S. crude inventories rose by 3.9 million barrels in the week ending September 5, versus expectations of a 1 million barrel draw, while gasoline stocks increased by 1.5 million barrels, exceeding forecasts. Rising inventories and evidence of slowing U.S. demand have added pressure to crude prices, despite earlier supply concerns.
Gold Remains Near Record Levels
Gold prices edged lower as investors awaited the U.S. CPI report, though the metal remained near record highs amid expectations for a Fed rate cut next week. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, keeping bullion supported in the current environment.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply