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Wall Street futures rebound, oil slides as markets await inflation data
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U.S. stock index futures rebounded on Friday while oil prices fell, as investors hoped the consumer inflation report would provide a positive end to a turbulent week. Oracle surged nearly 7% in premarket trading after its quarterly results beat expectations, reassuring shareholders that its AI investments are paying off. Nvidia rose 0.9%. Volatility in rate expectations has made the market backdrop fragile, with equities facing multiple headwinds including escalating Middle East conflicts and elevated U.S. Treasury yields. Markets now face a test from the Consumer Price Index (CPI) report, another data point that could alter interest rate expectations. The Producer Price Index (PPI) released on Thursday came in slightly above forecasts. Said Haidar of Haidar Capital Management said the Federal Reserve needs to respond to these data in the short term to avoid repeating the high inflation of the 1970s. As of 5:31 a.m. ET, Dow E-minis were up 0.53%, S&P 500 E-minis up 0.54%, and Nasdaq 100 E-minis up 0.57%. At Thursday's close, the S&P 500 was set for its largest weekly drop since June. Jeff Schulze of the Franklin Templeton Institute noted that history suggests strong starts often persist, with the S&P 500 continuing to rise in 25 out of 28 instances since 1950 when gains exceeded 10% through August. Brent crude futures dropped over 3% but remained above $104 per barrel. Bill Adams of Fifth Third Commercial Bank said the surge in energy prices has introduced new upside risks to inflation. The 10-year U.S. Treasury yield declined slightly but remained at 4.9424%, the highest level since 2023. Adobe fell over 3% in premarket trading as its midpoint fourth-quarter revenue forecast missed expectations. ACV Auctions shares soared about 44% after Copart agreed to acquire the company for nearly $1.9 billion.
Source report
Reuters — Sept 11 (Reuters) - U.S. stock index futures rebounded on Friday while oil prices fell, with investors hoping that the consumer inflation report would provide a positive end to a turbulent week.
Key Market Movers
- Oracle (ORCL.N) surged nearly 7% in premarket trading after its quarterly results released late Thursday beat expectations, reassuring shareholders that its AI investments are paying off.
- Nvidia (NVDA.O) rose 0.9%.
- Adobe (ADBE.O) fell more than 3% in premarket trading as its midpoint fourth-quarter revenue forecast missed expectations.
- ACV Auctions (ACVA.N) shares soared about 44% after online vehicle auctioneer Copart (CPRT.O) agreed to acquire the company in a deal worth nearly $1.9 billion.
Market Context
Volatility in rate expectations has made the market backdrop fragile, with equities facing multiple headwinds including escalating Middle East conflicts and elevated U.S. Treasury yields.
Markets now face a test from the Consumer Price Index (CPI) report, another data point that could alter interest rate expectations. The Producer Price Index (PPI) released on Thursday came in slightly above forecasts, failing to reassure investors.
"We believe the Federal Reserve needs to respond to these data in the short term, otherwise we risk repeating the high inflation of the 1970s, which would be another failure of discretionary monetary policy," said Said Haidar, founder of Haidar Capital Management.
Futures Data
As of 5:31 a.m. ET:
- Dow E-minis were up 276 points, or 0.53%
- S&P 500 E-minis were up 40.75 points, or 0.54%
- Nasdaq 100 E-minis were up 166.75 points, or 0.57%
Weekly Performance
At Thursday's close, the benchmark S&P 500 was set for its largest weekly drop since June, while the blue-chip Dow was poised for its biggest weekly decline since March.
"Some investors are questioning how long this year's rally can last. Encouragingly, history suggests strong starts often persist," wrote Jeff Schulze, Chief Investment Strategist at the Franklin Templeton Institute.
According to Schulze, in years since 1950 when the S&P 500 posted gains exceeding 10% through the end of August, the index continued to rise during September through December in 25 out of 28 instances.
Oil and Energy
- Brent crude futures dropped more than 3% but remained above $104 per barrel.
- West Texas Intermediate crude futures fell 2.6% but hovered near the $100-per-barrel mark.
"The surge in energy prices since the beginning of this month has introduced new upside risks to inflation," said Bill Adams, Chief U.S. Economist at Fifth Third Commercial Bank.
Data from price tracker GasBuddy showed that the national average diesel price in the U.S. broke through $6 per gallon for the first time on Thursday.
Treasury Yields
The 10-year U.S. Treasury yield declined by 0.16 basis points but remained at 4.9424%, the highest level since 2023. Elevated Treasury yields reduce the attractiveness of stocks.
Source: Reuters
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