Wall Street to mark time ahead of producer prices print

• Initial jobless claims data is due, providing follow-up context to last week's unexpectedly weak employment report
• Oil prices declined as President Trump shifted strategy from military action to economic pressure regarding the Strait of Hormuz
• Cisco and Cerebras reported earnings that beat expectations with strong AI infrastructure demand, but both stocks fell in after-hours trading; Applied Materials reports after the close following a 190% annual gain

Market Summary: Wall Street Awaits Producer Price Data

Market Overview:

US stock futures showed minimal movement Thursday morning, with Dow Jones Industrial Average, S&P 500, and Nasdaq-100 contracts trading near flat levels following a quiet Wall Street session.

Key Economic Data:

Investors are focused on the upcoming Producer Price Index (PPI) release, which measures inflation from the sellers' perspective. This follows Wednesday's consumer inflation data showing cooling prices in July. The softer inflation reading led traders to reduce bets on a September Federal Reserve rate hike. However, Fed policymakers remain divided, with most analysts still expecting at least one rate increase before year-end. Initial jobless claims data is also scheduled for release, providing additional context after last week's unexpectedly weak employment report.

Energy Markets:

Oil prices declined as President Trump pivoted from military action toward economic pressure regarding the Strait of Hormuz situation. The administration maintains the US retains total control of the strait, though private shipping data suggests otherwise.

Corporate Developments:

Cisco and Cerebras both exceeded earnings expectations and reported strong demand for artificial intelligence infrastructure, yet both stocks fell in extended trading. Applied Materials, a chipmaking equipment supplier, reports earnings after market close, facing high expectations following a 190% gain over the past year.

Retail Sector:

Results from Tapestry, Dillard's, and Birkenstock are expected to provide insights into how retailers are managing tariff refunds.

Market Implications:

The cautious tone suggests investors are awaiting clearer inflation signals before making significant positioning changes, particularly regarding Fed policy trajectory.