Nasdaq futures edged higher while Treasury yields declined in anticipation of the monthly Producer Price Index reading on Thursday. Traders are increasingly convinced that the Federal Reserve will refrain from raising interest rates at its upcoming meeting. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 experienced increases of 0.2%, 0.2%, and 0.1%, respectively, in the latest trading session. Yesterday, the blue-chip Dow experienced a decline for the third consecutive day this week, whereas the benchmark S&P 500 and tech-focused Nasdaq Composite managed to reverse two-day downturns, buoyed by robust earnings from the technology sector. The July PPI reading, scheduled for release at 8:30 a.m., follows the July CPI inflation report, which aligned with expectations the previous day.
Economists anticipate a 0.2% month-over-month increase in wholesale prices after a 0.3% decrease in June. Additionally, they project that “core” prices, which exclude the more volatile food and energy categories, will rise by 0.3%, an increase from the 0.2% recorded in the previous month. According to the CME Group’s FedWatch tool, traders currently perceive a 36% probability that the Federal Reserve will maintain interest rates at its upcoming meeting, a decrease from 40% the previous day and 55% a week prior. Last Friday’s unexpectedly weak July jobs report alleviated investor apprehension regarding a potential imminent increase in the central bank’s key interest rate. The 10-year Treasury yield, a key determinant of interest rates across various consumer loans such as mortgages, was observed below 4.68% in recent trading, a decrease from 4.69% at the close on Wednesday.
While robust earnings reports from CoreWeave, Super Micro Computer, and Lumentum Holdings propelled the Nasdaq and S&P 500 to gains yesterday, several tech firms’ shares were declining in premarket trading on Thursday following their results. Cerebras Systems, Cisco Systems, and Coherent dropped 19%, 6%, and 4.5%, respectively, following quarterly reports after the bell Wednesday. However, most of the Magnificent Seven tech giants pointed higher after all but Nvidia finished in the red yesterday. Shares of Nvidia, the world’s most valuable public company, increased after a 3% rise, leading the Dow yesterday. StubHub shares sank 17% after the ticket-resale platform posted an unexpected loss, despite the World Cup contributing to a better-than-expected revenue increase of 33%.
Crude oil futures experienced a decline for the second consecutive day as market participants remain attentive to developments in the Middle East. WTI futures, the U.S. benchmark, experienced a decline of 1.5% to $82 a barrel, whereas Brent futures, the international benchmark, also fell by 1.5% to $87.65. Gold futures experienced a decline of 0.6%, settling at $4,440 per ounce. Bitcoin was valued at approximately $63,600, reflecting a slight increase over the preceding 24 hours. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, decreased by 0.1% to 99.90.
