The Bureau of Labor Statistics will release the producer price index on Thursday, followed by the consumer price index data on Friday.
- According to a Morningstar report, economists expect inflation to have moderated in August.
- Meanwhile, oil prices surged past $101 a barrel on Wednesday.
- U.S. long-term yields soared to multi-year highs even after the Department of the Treasury said it will triple its upcoming debt buyback plan to $6 billion.
U.S. stock futures traded mixed in the overnight session late Wednesday, with the Dow and the S&P 500 climbing higher, and Nasdaq falling as markets await the producer price index (PPI) and consumer price index (CPI) this week.
Dow futures climbed 0.24%, and the S&P 500 edged 0.09% higher, while the Nasdaq-100 fell 0.14% at 9:57 PM EDT.
On Wednesday, all three benchmark indexes ended the session lower. The Nasdaq Composite led the decline, shedding 168 points to close 0.64% lower. The Dow Jones Industrial Average and S&P 500 ended the session 0.51% and 0.48% lower.
| Index | Move | Close |
| Dow Jones Industrial Average | -0.51% | 53,414.25 |
| S&P 500 | -0.48% | 7,636.36 |
| Nasdaq Composite | -0.64% | 26,253.34 |
Key US Market Drivers
While rising oil prices were in focus on Wednesday, markets are now awaiting key August inflation reports from the Bureau of Labor Statistics, with the PPI report expected on Thursday, followed by CPI data on Friday.
According to a Morningstar report, economists expect inflation to have moderated in August. The report, which cited FactSet data, expects CPI to rise 0.4% after rising 0.1% in July, with the year-over-year inflation rate likely to slow to 3.3% from 3.4%.
Meanwhile, oil prices surged past $101 a barrel on Wednesday. At the time of writing, Brent crude futures expiring in November were up about 0.36% to trade at $101.57 a barrel, while WTI crude futures expiring in October were trading at $96.72 per barrel, up 0.71%.
The U.S. Department of the Treasury said on Wednesday that it will triple its upcoming debt buyback plan to $6 billion. Despite the announcement, long-term yields soared, hitting multi-year highs.
The U.S. 10-year Treasury yield was trading at 4.847% at the time of writing, the highest since October 2023, while the U.S. 30-year Treasury yield was trading at 5.297%, nearing levels last seen in 2004.
“Inflation anxiety is rising with oil prices high and Treasury supply looming. A weak 10-year auction could push yields higher, pressuring stocks. A strong auction, however, signals buyer confidence at current yields,” Kenny Polcari, Chief Market Strategist at Slatestone Wealth, said in a post on X.
The inflation readings are key ahead of the Federal Reserve policy move expected next week. Morningstar said in a post on X that if the inflation reading proves to be hotter than expected, “economists say it could trigger the Fed to raise interest rates next week for the first time since 2023.”
Traders are pricing in a 60.2% chance of a rate hike by a quarter-percentage point in September, according to data from the CME FedWatch tool. The Federal Open Market Committee (FOMC) meeting is scheduled for Sept. 15–16.
Trending Stocks To Watch
Apple Inc. (AAPL): Shares of the iPhone maker edged higher in the overnight session late Wednesday, gaining about 0.52% as analysts looked into whether the $1,999 iPhone Duo could unlock a new revenue stream or pressure margins.
Paramount Skydance Corp. (PSKY): The company’s shares were in focus after it plunged more than 5% at close amid its demand for a $1.88 billion bond from 12 states and the Writers Guild of America to cover potential losses if the Warner Bros. Discovery (WBD) deal is delayed by litigation.
SK Hynix Inc. (SKHY): American-listed shares of the Korean chipmaker jumped about 7% at close on Wednesday as investors expect that memory chip shortages could persist through 2027, boosting sentiment.
Chewy Inc. (CHWY): The online pet retailer’s shares garnered focus after it reported its second-quarter (Q2) earnings results, reporting higher revenue and raising its full-year outlook.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) were trending higher at the time of writing, while the Invesco QQQ Trust (QQQ) edged lower.
The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.09% amid ‘bullish’ sentiment. Spot gold prices climbed to $4,417.05 an ounce.
Asian markets opened lower on Wednesday. South Korea's KOSPI, China’s SSE Composite, Japan’s Nikkei 225 and Australian stocks were all trading in the red.
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