Wall Street futures mixed ahead of key data: 5 things to know before market opens

• August PPI expected to show headline inflation up 0.4% month-over-month and core up 0.3%, with a hotter print potentially pushing yields higher and pressuring growth stocks
• Brent crude remained above $101 due to Middle East supply concerns, adding to inflation pressures and affecting transport costs across the economy
• The 10-year Treasury yield near 4.85% (highest since 2023) threatens valuation pressure on technology and long-duration stocks if it approaches 5%, while the ECB is expected to raise rates by 25 basis points to 2.5%

Market Summary: Wall Street Futures Mixed Ahead of Key Economic Data

Market Overview:

US stock futures showed mixed signals Thursday, with Dow futures up 0.21% and S&P 500 futures gaining 0.13%, while Nasdaq 100 futures fell 0.17% following three consecutive losing sessions.

Key Data and Events:

• PPI Report (8:30 AM ET): Economists expect headline Producer Price Index to rise 0.4% month-over-month, with core PPI up 0.3%. Markets are pricing in a 60% probability of a quarter-point Fed rate increase.
• 10-Year Treasury Yield: Hovering near 4.85%, approaching its highest level since 2023. A move toward 5% could significantly pressure technology and long-duration stocks.
• ECB Decision: European Central Bank expected to raise its deposit rate by 25 basis points to 2.5%, reinforcing global monetary tightening concerns.

Commodity Pressures:

Brent crude remained above $101 per barrel after breaking the $100 psychological threshold, driven by Middle East supply concerns. The elevated oil prices are fueling inflation fears and impacting equity valuations.

Corporate Focus:

• Apple unveiled its $1,999 iPhone Duo, its first foldable phone
• Oracle and Adobe report earnings after market close, with focus on AI-cloud demand and AI-driven revenue acceleration
• American Eagle stock plunged 11% despite strong earnings due to weaker merchandise margins and comparable-sales miss

Market Implications:

The combination of elevated oil prices, rising bond yields, and potential Fed tightening creates a challenging environment for growth stocks. Higher PPI data could accelerate the selloff in bonds and equities, particularly in rate-sensitive sectors.