Stock futures exhibited a mixed performance and remained relatively stable on Thursday in anticipation of a wholesale inflation report, while crude oil prices and the yield on the 10-year Treasury continued to rise. Futures for the Dow Jones Industrial Average and S&P 500 indicated increases of 0.2% and 0.1%, respectively, whereas futures for the Nasdaq 100 experienced a decline of 0.2%. Yesterday, the three major U.S. stock indexes experienced a decline for the third consecutive session, while Treasury yields reached their highest point in almost three years, following a Treasury Department buyback operation that fell short of the expectations of some bond traders. A day prior to the significant Consumer Price Index inflation reading for August, which may impact the Federal Reserve’s decision regarding interest rate adjustments at its forthcoming policy meeting, investors will direct their attention to the Producer Price Index data scheduled for release at 8:30 a.m. today. Wholesale prices are anticipated to have increased by 5.3% on a year-over-year basis in August.
Ahead of the reading, the 10-year Treasury yield was above 4.86%, up two basis points from Wednesday’s close—the highest closing level since October 2023. The yield had soared yesterday following the Treasury’s announcement of a $6 billion buyback operation, set to commence today, for longer-term bonds. Traders currently perceive a 64% probability that the Federal Reserve will increase interest rates at its upcoming meeting, according to the CME Group’s FedWatch tool. Oil prices continued to rise following a report in The Wall Street Journal, citing U.S. officials, that “top White House advisers have raised privately with President Trump the prospect that the Iran war could drag on through the remainder of his term.” Brent crude futures, the international benchmark, experienced an increase of nearly 1%, surpassing $102 a barrel after breaching the $100-a-barrel mark for the first time since July 23 yesterday. U.S. benchmark West Texas Intermediate prices experienced an increase of 1.5%, approaching $97.50.
Bitcoin was trading below 78,000, down modestly over the past 24 hours. The U.S. dollar index, which monitors the value of the greenback against a selection of foreign currencies, remained relatively stable at 98.79. Gold futures declined by 0.5%, settling at $4,440 per ounce. The Magnificent Seven mega-cap tech stocks exhibited a mixed performance prior to the market opening, while the Roundhill Magnificent Seven ETF remained relatively stable. Yesterday, all of the septet finished lower except for Meta Platforms, which jumped more than 6.5% after Alexandr Wang, the Facebook parent’s chief AI officer, stated that usage of its new Muse AI agent had already “blown way past our projections.”
Meta shares increased by an additional 1.5% in premarket trading, while Apple stock saw a rise of over 1% following a 0.3% decline on Wednesday, after the iPhone maker introduced its latest products, which include its inaugural foldable iPhone. In the aftermath of earnings reports, shares of medical devices manufacturer The Cooper Companies experienced a decline of 15%, while retailer American Eagle Outfitters saw a decrease of 12%. Conversely, drone manufacturer AeroVironment recorded an increase of nearly 7%. Macy’s was set to report results ahead of the bell, while Oracle and Adobe were slated to do so after markets close.
