Stock futures rise as traders prepare for wholesale inflation report live updates
On a day marked by significant market volatility, major U.S. stock indices experienced declines amid escalating oil prices and ongoing geopolitical tensions. Traders on the New York Stock Exchange witnessed the Dow Jones Industrial Average fall by 316.56 points, or approximately 0.6%, closing at 52,064.10. Similarly, the S&P 500 and Nasdaq Composite indices decreased by 0.58% to 7,591.70 and 0.65% to 26,081.72, respectively, marking a fourth consecutive day of losses for these benchmarks.
The dip in the stock market was largely attributed to U.S. oil prices exceeding 0 a barrel, driven by concerns that the conflict in the Middle East would contribute to prolonged inflationary pressures. West Texas Intermediate (WTI) crude oil prices surged by 6.7%, closing at 2.48, while Brent crude also saw a notable increase, settling at 7.63—a rise of 5.9%. This development is significant, as it has pushed the year-to-date increase in WTI prices to 78.5% since the onset of the conflict in late February.
In tandem with rising oil prices, Treasury yields also climbed, with the 10-year yield surpassing 4.95%, reaching its highest level since October 2023. Such conditions have raised concerns regarding the potential for a slowdown in economic growth, particularly affecting high-beta technology stocks that have previously boosted the market’s ascent. Among the notable declines, Intel shares fell by 5.6%, and Micron Technology experienced a decline of 4.7%. Even major tech firms such as Alphabet and Microsoft recorded insignificant gains, while Apple’s stock rose by 3.6% following the launch of its much-anticipated foldable smartphone.
In the context of inflation, the producer price index (PPI) indicated a seasonal increase of 0.4% in August, aligning with market expectations but failing to diminish concerns related to rising costs. This measure, which sits above the Federal Reserve’s 2% inflation target, sets the stage for a closely watched release of the consumer price index (CPI) the following day.
As market participants weigh the implications of elevated oil prices and Treasury yields, the betting for an interest rate hike at the upcoming Federal Reserve meeting remains high, with futures indicating a 73% likelihood of a quarter-point increase. The interconnected nature of geopolitical events, energy prices, and domestic economic indicators continues to pose challenges for both policymakers and investors alike.
#business #politics #technology
