Stock futures edged higher on Thursday as traders awaited crucial inflation data, aiming to rebound from a recent market slump. Rising Treasury yields and geopolitical concerns driving oil prices higher continue to be key market drivers.
Investors are closely watching the Producer Price Index (PPI) report today and the Consumer Price Index (CPI) tomorrow for further insights into inflation trends and the Federal Reserve’s future policy decisions.
Stock Futures Edge Up as Traders Await Inflation Data and Brace for Market Volatility
U.S. stock futures showed slight gains early Thursday as traders braced for a key inflation report, seeking to recover from a three-day slide. Meanwhile, global markets reacted to rising Treasury yields and geopolitical tensions impacting oil prices.
Dow futures rose 174 points, or 0.33%, while S&P 500 futures added 0.18%. Nasdaq-100 futures were marginally lower. This follows a significant downturn on Wednesday, with the Dow shedding over 400 points, the S&P 500 falling 0.5%, and the Nasdaq Composite declining 0.6%.
Global Markets Under Pressure
Asian markets experienced declines on Thursday. Japan's Nikkei 225 dropped 0.62%, South Korea's Kospi lost 0.24%, and Australia's S&P/ASX 200 was down 1.36%. Hong Kong's Hang Seng Index fell 1.47%, and China's CSI 300 traded 0.74% lower.
Treasury Yields and Oil Prices Drive Market Sentiment
Rising Treasury yields continued to pressure U.S. stocks. The 10-year Treasury note yield climbed to a session high of 4.857%, its highest level since November 2023. This surge followed the Treasury Department's announcement of an upscaled buyback operation for longer-term debt, a move that triple the usual amount.
Concerns over escalating tensions between the U.S. and Iran also contributed to market jitters, pushing oil prices higher. International Brent crude futures advanced 3.4% to close at $101.21 a barrel, and U.S. West Texas Intermediate crude futures rose 3.3% to end at $96.05. Both benchmarks reached their highest settlement prices since May.
Key Inflation Data on Deck
Traders are closely awaiting two key inflation reports this week. The August producer price index (PPI), a measure of wholesale inflation, is due Thursday morning. Economists polled by Dow Jones anticipate a monthly gain of 0.3% and a 5.3% year-over-year increase.
Following on Friday, the consumer price index (CPI) is expected to show a 0.4% jump in August and a 3.4% increase over the preceding 12 months, according to Dow Jones consensus estimates.
Other Economic Indicators
Additional economic data expected on Thursday morning includes weekly initial jobless claims and August existing home sales.
DBS Faces $1 Billion Lawsuit
In other news, DBS, Southeast Asia's largest bank, is "categorically rejecting and will vigorously resist" a $1 billion lawsuit related to 1MDB claims. The lawsuit was filed by liquidators of four companies. DBS stated that it has been in public record for global recovery efforts since 2018 with no prior claims against the bank. Shares of DBS fell 0.58% in early trading.
Mortgage Rates Climb
The rate on a 30-year fixed mortgage reached 6.97% on Wednesday, its highest level since May 30, 2025. This rise, influenced by the climbing 10-year Treasury yield, brings the rate closer to the 7% mark, impacting the housing market.
