The August PPI, due later on Thursday, is expected to show a 0.3% month-on-month increase and a 5.3% rise from a year earlier, according to the Dow Jones consensus.
The data comes a day ahead of the consumer price index (CPI), which is expected to rise 0.4% month-on-month in August and 3.4% over the past year. The two inflation readings will be closely watched ahead of the Federal Reserve’s September 15-16 policy meeting, with markets pricing in around a 60% probability of a rate hike.
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US stocks under pressure as yields, oil climb
The cautious start comes after US equities fell for a third straight session on Wednesday. The Dow dropped more than 400 points, or 0.8%, while the S&P 500 declined 0.5% and the Nasdaq Composite lost 0.6%.
Higher Treasury yields have added to pressure on equities. The 10-year Treasury yield climbed to 4.857% on Wednesday, its highest level since November 2023, while the 30-year yield rose to 5.30% on Thursday ahead of a $22 billion Treasury auction.
Oil prices have also moved sharply higher amid escalating tensions between the US and Iran. Brent crude settled 3.4% higher at $101.21 a barrel on Wednesday, while West Texas Intermediate gained 3.3% to $96.05. Both benchmarks recorded their highest settlements since May, with Brent briefly moving above $102 on Thursday.
Higher energy prices could complicate the inflation outlook at a time when investors are already assessing whether persistent price pressures could keep US interest rates higher for longer.
Apple gains, Macy’s shares fall, earnings in focus
Apple shares gain 1% in premarket trade as investors digest new product launches, including the $2,000 foldable iPhone Duo. The company also unveiled the iPhone 18 Pro, AirPods 5 and Apple Watch Series 12 at its launch event on Wednesday.Oracle earnings are scheduled to be reported after the US market close. The company’s shares are down 17% so far this year as investors remain concerned about its heavy capital spending and leverage.
Adobe is also due to provide an update on how software companies are navigating the disruption and investment opportunities created by artificial intelligence.
Macy’s shares fell more than 2% in premarket trading despite the retailer reporting better-than-expected second-quarter revenue and raising its full-year guidance.
The company reported adjusted earnings of 40 cents per share and revenue of $4.87 billion, compared with the LSEG poll estimates of $4.83 billion. The retailer is nearing the end of a three-year turnaround plan focused on improving growth and investing in better-performing locations.
