S&P 500, Nasdaq, Dow Futures Mixed Ahead Of CPI As Hot PPI, Oil Surge Keep Fed In Focus: Why Traders Are Eyeing GME, ORCL, USO, ADBE Stocks

• Consumer Price Index (CPI) data expected on Friday will likely provide more clarity on the U.S. economy and the Fed’s interest rate decision. 
• Meanwhile, oil prices soared on Thursday, climbing above $109 a barrel as tensions in the Middle East continue to remain elevated. 
• Traders are now pricing in a 72.4% chance of a rate hike by a quarter-percentage point in September, according to data from the CME FedWatch tool.

U.S. stock futures traded higher in the overnight session late Thursday as markets look ahead to the consumer price index (CPI) data for August on Friday, while concerns lingered about a potential rate hike at the Federal Reserve’s upcoming policy meeting after a rise in the producer price index (PPI). 

Dow futures climbed 0.21%, and the S&P 500 edged 0.13% higher, while the Nasdaq-100 fell 0.09% at 9:49 PM EDT.  

On Thursday, all three benchmark indexes ended the session lower. The Nasdaq Composite led the decline, shedding more than 171 points to close 0.65% lower. The Dow Jones Industrial Average and S&P 500 ended the session 0.60% and 0.58% lower.  

The Dow, S&P 500 and Nasdaq Composite are on track to end the week in the red. 

Key US Market Drivers

This week, markets have been watching inflation prints closely, which are likely to provide cues on the Fed’s policy decision at the September meeting next week. 

The August Producer Price Index from the U.S. Bureau of Labor Statistics showed a monthly expansion of 0.4%, lifting headline figures to an annual rate of 5.4%, higher than the Fed’s 2% target and a percentage point above expectations. 

Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital, said in a post on X, “August PPP was in line with expectations +0.4%mom/5.4%yoy with core +0.2%mom/4.6%yoy, but key components that feed into the core PCE were a bit higher than expected, adding to upside risks for the core PCE (& hence Fed hike odds).”

Traders are now pricing in a 72.4% 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. 

Consumer Price Index (CPI) data expected on Friday will likely provide more clarity on the U.S. economy and the Fed’s interest rate decision. 

Meanwhile, oil prices soared on Thursday, climbing above $109 a barrel as tensions in the Middle East continue to remain elevated. At the time of writing, prices declined, with Brent crude futures expiring in November down about 0.22% to $107.51 a barrel, while WTI crude futures expiring in October traded at $102.32 per barrel, down 0.16%.

“Oil is now trading at $109.35/barrel, up an eye-popping $8.14/barrel today ALONE. 8.04%.As bad as today may seem… things are going to get a LOT worse in the coming months…,” Brett Erickson, Managing Principal at Obsidian Risk Advisors, said in a post on X. 

Alongside rising oil prices, U.S. Treasury yields also climbed to multi-year highs despite the Department of the Treasury saying on Wednesday that it will triple its upcoming debt buyback plan to $6 billion. 

The U.S. 10-year Treasury yield was trading at 4.967% at the time of writing, while the U.S. 30-year Treasury yield was trading at 5.377%. 

“Another 8 hours later and the 10Y Note Yield is now pushing into 5.00% with US oil prices above $104/barrel. If US CPI inflation comes in hot tomorrow, things are going to get very ugly,” The Kobeissi Letter said in a post on X. 

Trending Stocks To Watch 

GameStop Corp. (GME): Shares of the company jumped nearly 4% higher in the overnight session late Thursday after Chairman and CEO Ryan Cohen bought one million shares of the company in the open market.

Oracle Corp. (ORCL): The company’s stock climbed more than 4% in extended trading hours after it posted first-quarter (Q1) results, posting triple-digit growth in its cloud infrastructure business.

United States Oil Fund (USO): The exchange-traded fund (ETF) that tracks the daily price movements of light, sweet crude oil was on the retail radar as oil prices soared to multi-year highs amid the ongoing tensions in the Middle East. 

Adobe Inc. (ADBE): Shares of the company fell more than 1% overnight after it reported third-quarter results. While it reported better-than-expected figures, the company guided to a softer Q4 revenue outlook, which weighed on its shares. 

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 0.15% amid ‘bearish’ sentiment. Spot gold prices climbed to $4,324.49 an ounce. 

Asian markets opened lower on Friday. South Korea's KOSPI, China’s SSE Composite, Japan’s Nikkei 225 and Australian stocks were all trading in the red. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.