Dow Futures Gain 99 Points Ahead of PPI Data Release
U.S. stock futures point to a cautious open Thursday, with the Dow Jones Industrial Average contract up 99 points. This follows a third consecutive session of losses for major indexes. Investors await August producer price data while oil prices remain above $100 per barrel.
Dow Jones Industrial Average futures rose 99 points, or 0.2%, in pre-market trade on Thursday. S&P 500 futures remained nearly flat. Nasdaq-100 futures fell 0.4%. This opens the day after major U.S. indexes posted losses for the third straight session. Wednesday’s trading saw the Dow drop more than 400 points. The S&P 500 lost 0.5%, and the Nasdaq Composite gave back 0.6%.
Treasury Debt Buyback Lifts Long-Term Yields
The U.S. Treasury announced plans to repurchase up to $6 billion in longer-term debt. This amount is triple the usual buyback size. The move pushed the yield on the 10-year Treasury note to a session high of 4.857%. This is the highest level since November 2023. Bond investors viewed the program as too small to lower long-end yields significantly. Wolfe Research noted the size falls short of what is needed to materially move yields.
Oil Prices Hit Five-Month Highs
Brent crude settled at $101.21 per barrel after a 3.4% jump on Wednesday. WTI crude ended at $96.05 following a 3.3% increase. These are the highest closing prices for both benchmarks since May. Escalating tensions between the U.S. and Iran drove the gains. Advisors close to the U.S. president believe the confrontation may not resolve before 2029. This uncertainty weighed on market sentiment.
Inflation Data and Global Market Moves
The August producer price index is due Thursday. Economists surveyed by Dow Jones forecast a 0.3% monthly rise. The year-over-year increase is expected at 5.3%. The August consumer price index follows on Friday. Forecasts show a 0.4% monthly gain and 3.4% year-over-year growth. These readings feed into the Fed's preferred inflation measure, released after the September 16 rate decision. Overseas, Tokyo's Nikkei 225 gained 0.2%. Seoul's Kospi lost 0.25%, and Sydney's ASX 200 dropped over 1%. European equities slipped, with the Stoxx 600 down 0.1% ahead of the ECB's rate hike. GN markets/inflation (en-US) tracks these global shifts closely.
