Dow futures were up 0.09%, S&P 500 futures climbed 0.04% and Nasdaq-100 futures declined 0.08% at the time of writing.
- July’s U.S. producer price index was flat, missing market forecasts of a 0.2% increase, following a tepid July CPI print.
- Both inflation prints alleviated inflation concerns that had been weighing on markets in recent sessions, particularly regarding a near-term hike in the Federal Reserve’s key interest rate.
- According to data from the CME FedWatch tool, the probability of a Fed rate hike in September is down to 34.8% from 55% a week earlier.
U.S. stock futures were trading mixed in the overnight session late Thursday after July’s tame producer price index (PPI) reading eased concerns about a Federal Reserve interest-rate hike in September.
The PPI comes shortly after Wednesday’s consumer price index (CPI) report, which showed headline CPI rising 0.1% month over month, in line with market expectations.
Dow futures were up 0.09%, and S&P 500 futures climbed 0.04% at the time of writing. Meanwhile, Nasdaq-100 futures declined 0.08% at 10:48 PM EDT.
On Thursday, all three benchmark indexes closed higher, with the Nasdaq Composite leading the climb, up 0.81%. The Dow and S&P 500 also closed up 0.13% and 0.65%, respectively.
The S&P 500 closed at a record high after touching an intraday peak of 7,816.70.
| Index | Move | Close |
| Dow Jones Industrial Average | 0.13% | 53,839.99 |
| S&P 500 | 0.65% | 7,798.99 |
| Nasdaq Composite | 0.81% | 26,803.02 |
Key US Market Drivers
U.S. markets were focused on inflation readings this week, with July’s PPI flat, missing market forecasts of a 0.2% increase. Meanwhile, the annual producer inflation slowed sharply to 4.7% for the 12 months ended in July, down from 5.5% in June, signalling an easing of wholesale price pressures.
The print followed July’s tepid CPI report with headline consumer inflation rising 0.1% month over month and 3.4% year over year, while core CPI increased 0.2% monthly and 2.5% annually. Both annual measures showed a slight moderation from June.
Both inflation prints alleviated inflation concerns that had been weighing on markets in recent sessions, particularly regarding a near-time hike in the Federal Reserve’s key interest rate.
“Month-over-month PPI inflation was flat, at 0.0%, the first such reading since June 2025. The odds of rate hikes are declining further,” The Kobeissi Letter said in a post on X.
According to data from the CME FedWatch tool, the probability of a Fed rate hike in September is down to 34.8% from 55% a week earlier.
Mohamed El-Erian, Chief Economic Advisor at Allianz, noted in a post on X, “US PPI inflation, an indicator of pipeline cost pressures, came in cooler than/in line with consensus forecasts. Following yesterday’s CPI release, today’s figures are further cooling market expectations for a September Fed rate hike, bringing the implied probability down to around one-third.”
July’s retail sales data expected later today is likely to provide further insights into the state of the U.S. economy.
On the geopolitical front, tensions between Iran and the U.S. remain elevated as efforts on a permanent end to the war persist without much movement, even as traffic through the vital Strait of Hormuz remains severely impeded.
Meanwhile, U.S. Treasury Secretary Scott Bessent said the country would soon roll out bills as unprecedented economic measures against Iran. “Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation on a country,” Bessent said in an interview with Newsmax.
Global oil prices were trending lower at the time of writing. Brent crude futures expiring in October were down more than 0.22% to $86.88 a barrel. Meanwhile, WTI crude futures expiring in September were trading at $81.12 per barrel, down about 0.16% at the time of writing.
Trending Stocks To Watch
Applied Materials Inc. (AMAT): Shares of the semiconductor equipment maker were on the retail radar amid its third-quarter (Q3) financial results. The stock was down nearly 5% despite topping Wall Street estimates.
Intuitive Machines Inc. (LUNR): The company’s second-quarter (Q2) revenue quadrupled to a record $206.2 million but missed Wall Street estimates. Shares of the company closed up 3.6%.
Workday Inc. (WDAY): Shares of the company soared to their best day on record amid reports that private equity heavyweight Silver Lake is in preliminary discussions to purchase the software giant.
Boston Scientific Corp. (BSX): The company was in the spotlight after shares climbed more than 3% overnight amid growing investor optimism about its future growth prospects.
Other Market Trends
Yields on the 10-year Treasury were at 4.651% at the time of writing, while spot gold prices fell to $4,315.31 per ounce.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) were climbing higher at the time of writing, while the Invesco QQQ Trust (QQQ) edged lower.
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.05% amid ‘bearish’ sentiment.
Asian markets were trading mixed on Friday. South Korea's KOSPI, and Japan’s Nikkei 225 were climbing higher at the time of writing, while China’s SSE Composite and Australian stocks were trading in the red.
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