US Stocks Rise 0.6% Pre-Bell Ahead of CPI Data

The S&P 500, Dow Jones Industrial Average, and Nasdaq all climbed 0.6% in premarket sessions. This gain follows four consecutive sessions of losses for these benchmarks. Market participants are positioning ahead of the Federal Reserve’s September 15-16 policy meeting.

Consensus estimates from Bloomberg project consumer inflation increased 0.4% month-over-month in August. Annual inflation is expected to reach 3.4%. Core CPI, which excludes food and energy, is forecast to rise 0.2% sequentially and 2.4% year-over-year.

Inflation Data and Rate Expectations

Producer prices rose at their fastest pace in three months in August. Higher fuel costs drove this increase according to government data. Oxford Economics predicts further upward pressure on wholesale costs as domestic diesel prices hit new peaks.

The CME FedWatch tool indicates a 68% probability of a 25 basis point rate hike. The remaining odds suggest the central bank will hold rates steady. Treasury yields remained mixed, with the two-year rate up 0.3 basis points to 4.55%.

Energy Markets Face Demand Revisions

West Texas Intermediate crude oil fell 3.4% to $99.02 per barrel. Brent crude declined 3.7% to $103.65. The International Energy Agency forecasts global oil demand to drop by 2.5 million barrels a day this year.

This demand forecast is 940,000 barrels lower than the previous estimate. OPEC also cut its global oil demand outlook for 2026. High energy prices are expected to weigh on consumption globally.

Corporate Results and Commodity Prices

Oracle shares jumped 6.7% pre-bell after reporting strong fiscal first-quarter results. Adobe fell 3.8% as its fourth-quarter revenue outlook missed market expectations. Kroger is also reporting financial results before the market opens.

The average US diesel price hit a record high of $6.0556 per gallon. Regular gas prices rose to $4.2950 per gallon from $4.0116 a month ago. Gold dipped 0.4% to $4,390 per troy ounce while bitcoin decreased 0.2% to $77,001.