Stocks Rise Before the Open as Oil Prices Ease, U.S. PPI Data on Deck

September S&P 500 E-Mini futures (ESU26) are up +0.19%, and September Nasdaq 100 E-Mini futures (NQU26) are up +0.10% this morning, buoyed by a drop in oil prices, while investors await crucial U.S. producer inflation data for further clues on the Federal Reserve’s policy path.

The price of WTI crude fell over -2% on Thursday as investors weighed a weaker demand outlook and continued to monitor developments in the Middle East. OPEC and the International Energy Agency both cut their 2026 crude demand forecasts. Meanwhile, the U.S. and Iran remained at an impasse over plans to reopen the Strait of Hormuz or begin peace talks.

Treasuries rose across the curve on Thursday as lower oil prices eased inflation concerns. The 10-year T-note yield fell three basis points to 4.67%.

In yesterday’s trading session, Wall Street’s three main equity benchmarks closed mostly higher. Super Micro Computer (SMCI) jumped over +19% and was the top percentage gainer on the S&P 500 after the server maker gave an FQ1 revenue forecast that crushed Wall Street’s estimates. Also, Nebius Group N.V. (NBIS) popped more than +34% and was the top percentage gainer on the Nasdaq 100 after the cloud-computing company reported a 514% surge in Q2 sales for its AI cloud business. In addition, CoreWeave (CRWV) surged over +19% after the company posted stronger-than-expected Q2 results, raised its full-year revenue guidance, and said its backlog stood at $104 billion at the end of the quarter. On the bearish side, most members of the Magnificent Seven slid, with Meta Platforms (META) falling over -3% and Microsoft (MSFT) dropping more than -2%.

The U.S. Bureau of Labor Statistics report released on Wednesday showed that consumer prices rose +0.1% m/m in July, in line with expectations. On an annual basis, headline inflation eased to +3.4% in July from +3.5% in June, right on expectations. Also, the core CPI, which excludes volatile food and fuel prices, rose +0.2% m/m and +2.5% y/y in July, matching expectations. The annual core CPI reading matched February’s, the lowest recorded since 2021.

The benign CPI report and the most recent weak jobs report “may keep hawkish Fed officials at bay in September,” according to Gary Schlossberg at Wells Fargo Investment Institute. “However, we remain guarded on the near-term outlook for inflation amid volatile oil prices tied to the ongoing Middle East conflict, along with lingering core price pressures from a strong economy and the AI boom.”

Meanwhile, U.S. rate futures have priced in a 63.6% chance of no rate change and a 36.4% chance of a 25-basis-point rate hike at the next central bank meeting in September.

Today, investors will closely watch the U.S. Producer Price Index, which is set to be released in a couple of hours. Economists, on average, forecast that the U.S. July PPI will rise +0.2% m/m and +4.9% y/y, compared with the previous readings of -0.3% m/m and +5.5% y/y.

The U.S. Core PPI will also be in focus today. Economists expect a core measure of wholesale inflation to rise +0.3% m/m and +4.2% y/y in July, compared with +0.2% m/m and +4.7% y/y in June.

U.S. Initial Jobless Claims data will be released today as well. Economists project this figure to come in at 202K, compared with last week’s number of 199K.

In addition, market participants will parse comments today from Cleveland Fed President Beth Hammack and Richmond Fed President Tom Barkin.

On the earnings front, chip equipment maker Applied Materials (AMAT) is scheduled to report its FQ3 results after the closing bell today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.68%, down -0.55%.

The Euro Stoxx 50 Index is up +0.55% this morning, supported by a drop in oil prices and some positive corporate news. Bank stocks led the gains on Thursday. Also, travel and leisure stocks advanced as lower oil prices improved the sector’s outlook. At the same time, mining stocks slumped as both precious and industrial metal prices slid. Data from the Office for National Statistics released on Thursday showed that the U.K.’s economic growth remained robust in the second quarter despite heightened uncertainty stemming from the Middle East conflict. Separately, final data from the INE showed that Spain’s annual inflation rate picked up more than initially expected in July. Meanwhile, Norway’s central bank kept its key policy rate unchanged at 4.25% on Thursday, as expected, but left the door open to another rate hike later this year. In corporate news, Adyen (ADYEN.NA) jumped over +15% after the Dutch payments firm raised its full-year revenue growth guidance. Also, Maersk (MAERB.C.DX) climbed more than +7% after the Danish shipping group topped profit forecasts and lifted its full-year earnings guidance.

U.K. GDP (preliminary), Spain’s CPI, and Eurozone’s Industrial Production data were released today.

U.K. GDP rose +0.4% q/q and +1.2% y/y in the second quarter, compared with expectations of +0.4% q/q and +1.1% y/y.

U.K. June GDP rose +0.3% m/m and +1.1% y/y, stronger than expectations of no change m/m and +0.8% y/y.

The Spanish July CPI rose +0.3% m/m and +3.6% y/y, stronger than expectations of +0.2% m/m and +3.5% y/y.

Eurozone’s June Industrial Production was unchanged m/m and rose +0.1% y/y, stronger than expectations of -0.1% m/m and -0.8% y/y.

Asian stock markets today settled mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.50%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +1.16%.

China’s Shanghai Composite Index reversed earlier gains and closed lower today. Non-ferrous metal stocks led the declines on Thursday, weighed down by a retreat in gold prices. Limiting losses, optical-networking stocks broadly advanced after U.S. giant Lumentum Holdings reported upbeat quarterly results and guidance. Financial stocks also edged higher. Meanwhile, China’s central bank, in a quarterly monetary policy report published on Wednesday, pledged to introduce additional policy support in a timely manner but stopped short of providing further details, reinforcing expectations that no major easing is imminent. “The PBoC followed the Politburo in its policy guidance without specifying explicit policy tools for deployment,” according to Citi economists. Separately, the People’s Bank of China said it would conduct up to 600 billion yuan ($88.98 billion) in overnight reverse repos per day on August 14 and August 17-19. On Thursday, the PBOC said the volume of its seven-day reverse repos in open market operations remained at zero for a third consecutive day. In corporate news, Lenovo Group popped over +20% in Hong Kong after the company posted a 43% jump in quarterly revenue, driven by strong AI infrastructure demand and the resilience of its PC business.

Japan’s Nikkei 225 Stock Index closed higher today, buoyed by a strong session on Wall Street after the benign U.S. inflation report eased concerns about an imminent Fed rate hike. Chip and other AI-related stocks led the gains on Thursday as the AI trade regained momentum following stellar earnings from CoreWeave and other AI infrastructure firms. Bank stocks also rallied as Japanese government bond yields continued to climb amid growing expectations of a Bank of Japan rate hike next month. Data released on Thursday showed that Japan’s annual wholesale inflation remained elevated in July. The producer price index rose 7.2% in July from a year earlier, easing slightly from the revised 7.3% in June, which was the highest level since March 2023. “Wholesale inflation is expected to re-accelerate as renewed tension in the Middle East is pushing up crude oil prices, which will push up the cost of energy and other goods,” said Masato Koike at Sompo Institute Plus. Thursday’s data added to signs that companies remain under pressure to pass higher costs on to customers, keeping the BOJ on track to continue raising interest rates. Meanwhile, Bloomberg reported on Thursday that Prime Minister Sanae Takaichi’s government supports a near-term BOJ rate hike, with the next move likely to come in September or October. The central bank’s concerns about yen weakness fueling inflation and the government’s desire to bolster the impact of the recent U.S.-Japan currency intervention are aligning them on the need for a near-term rate hike, the report said. In corporate news, Toppan Holdings surged over +10% after the printing and packaging firm reported strong quarterly earnings. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.28% to 31.65.

The Japanese July PPI rose +0.1% m/m and +7.2% y/y, weaker than expectations of +0.6% m/m and +7.4% y/y.

Pre-Market U.S. Stock Movers

Cisco Systems (CSCO) slumped over -5% in pre-market trading after the networking company projected $7.5 billion in AI data center-related sales for fiscal 2027, disappointing investors.

Cerebras Systems (CBRS) tumbled more than -18% in pre-market trading after the company’s Q3 core revenue guidance failed to impress investors.

Coherent (COHR) fell over -4% in pre-market trading as its strong FQ4 results and FQ1 guidance failed to meet investors’ ever-increasing expectations, particularly after rival Lumentum Holdings delivered stellar earnings a day earlier.

Omeros (OMER) jumped more than +16% in pre-market trading after the biotechnology company unexpectedly swung to a profit in the second quarter.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - August 13th

Applied Materials (AMAT), Nu Holdings (NU), Bending Spoons (BSP), Tapestry (TPR), Credicorp (BAP), QXO, Inc. (QXO), Pershing Square (PS), Brookfield Wealth Solutions (BNT), Applied Industrial Technologies (AIT), Dillard’s (DDS), Madison Square Garden Sports (MSGS), X-Energy (XE), Legence (LGN), Birkenstock Holding (BIRK), Figure Technology Solutions (FIGR), SOLV Energy (MWH), Ondas (ONDS), Alliance Laundry Holdings (ALH), Fermi (FRMI), Celcuity (CELC), DLocal (DLO), Telesat (TSAT), Aya Gold & Silver (AYA), Pershing Square USA (PSUS), Cellebrite DI (CLBT), YETI Holdings (YETI), Bullish (BLSH), Intuitive Machines (LUNR), Alumis (ALMS), Accelerant Holdings (ARX), Nektar Therapeutics (NKTR), HeartFlow (HTFL), HawkEye 360 (HAWK), StoneCo (STNE), McGraw Hill (MH), Midera Food Processing (MFP), Aveanna Healthcare Holdings (AVAH), ADI Global Distribution (ADIG), TMC the metals company (TMC), First Tracks Biotherapeutics (TRAX), Arcos Dorados Holdings (ARCO), Globant (GLOB), Nomad Foods (NOMD), Wolverine World Wide (WWW), York Space Systems (YSS), Inhibrx Biosciences (INBX), Yesway (YSWY), Immatics (IMTX), Afya Limited (AFYA), Eton Pharmaceuticals (ETON), Jefferson Capital (JCAP), Lithium Americas (LAC), Newsmax (NMAX), Aebi Schmidt Holding AG (AEBI), Falcon's Beyond Global (FBYD), Glass House Brands (GLAS), Bright Minds Biosciences (DRUG), Stratasys (SSYS), BTQ Technologies (BTQ), ARS Pharmaceuticals (SPRY), CorMedix (CRMD), Idaho Strategic Resources (IDR), KinderCare Learning Companies (KLC).