Stock futures were mixed Thursday ahead of crucial U.S. inflation prints
Thursday and Friday.
Oil prices rose with Brent holding above $100 a barrel after Wednesday's sharp rally as markets assessed escalating attacks on Gulf shipping and renewed Houthi strikes on Saudi Arabia.
Meanwhile, the 10-year Treasury yield climbed and was on track for its highest settle since 2023, as investor disappointment over the size of Treasury Secretary Scott Bessent's repurchase program continued.
"If Scott Bessent thought this move would stabilize the U.S. bond market, he was wrong," XTB said.
Investors are now awaiting the August producer prices report to be released today and the consumer prices data to be published Friday for further signals on the prospects of the Federal Reserve raising interest rates next week. Money markets price in a 59% probability of a Fed rate increase next week, LSEG data show.
Inflation may be the main focus for the market, but earnings still matter for investors. Software giants Adobe and Oracle are both set to report after Thursday's close.
Stocks to watch
Apple rose 1% ahead of the opening bell, a day after the technology giant debuted its first-ever foldable iPhone at a product event that also featured Apple's new CEO, John Ternus.
Macy's reports quarterly earnings ahead of today's opening bell. Shares were down premarket.
Oracle is set to report earnings after markets close today, an update that could provide insight into its push to become a major infrastructure provider for OpenAI.
TSMC's U.S.-listed shares slipped in premarket trading. The chip maker reported that August revenues surged 53% from last year.
Watch For:
U.S. PPI for August; U.S. Weekly Jobless Claims; U.S. Existing Home Sales for August; U.S. Wholesale Inventories for July; EIA Weekly Petroleum Status Report; Oracle 1Q earnings
Today's Top Headlines/Must Reads:
- A Tiny Shift in the Inflation Rate Could Decide the Fed's Next Move
- The IPO That Asks You to Buy AI Hype Today and Get Paid Years Later
- Could Laser Fusion Tech Be Used to Shoot Down Missiles and Drones?
MARKET WRAPS Forex:
The dollar was edging up after falling slightly, awaiting input from Thursday's PPI and Friday's CPI data for August.
The euro was stable against the dollar as investors await the European Central Bank's rate decision and President Christine Lagarde's press conference later in the day.
Bonds:
Treasury yields edged higher in early trade, awaiting the Treasury's first buyback auction with increased volume.
Energy:
Front-month Brent crude oil futures gained 0.3%, while front-month WTI crude oil futures rose 0.3%. Both benchmarks traded mixed earlier in the day after settling Wednesday at their highest closing levels since May 22.
HSBC raised its oil-price forecasts for this year and next, saying it expects the market to remain in deficit until around mid-2027.
Metals:
Gold prices hovered around $4,400 a troy ounce as investors awaited the release of key U.S. inflation data ahead of the Federal Reserve's policy meeting next week.
Copper
Copper extended its record-breaking rally, surging above $14,790 a metric ton as supply shortages and tariff fears continued to drive sentiment. Still, "the speed of copper's rise and the continued narrowing in backwardation reduce the confirmation from nearby fundamentals," said Sucden Financial.
Iron ore
Iron ore prices were lower in early Asian trade, as the metal's fundamentals remained soft, Baocheng Futures said.
TODAY'S TOP HEADLINES
The IPO That Asks You to Buy AI Hype Today and Get Paid Years Later
There are some eyebrow-raising details in the filing of SoftBank-backed SB Energy, a power and data-center developer that plans to go public as soon as this month. None of its three planned data centers are operational, for example. Its relationships with SoftBank, OpenAI and Nvidia stretch the possibilities of circular financing.
But there is also a simpler observation that makes this IPO unusual. Development is a risky business, with a lumpy earnings pattern that makes it unpalatable for many public-market investors.
HSBC Chief Financial Officer to Leave in 2027
HSBC's group chief financial officer will step down in 2027, the bank said.
Pam Kaur told the group's board of her intention to stand down next year, though the exact date of her departure hasn't been confirmed.
Could Laser Fusion Tech Be Used to Shoot Down Missiles and Drones?
Fusion energy has been an elusive, clean-energy dream for years. Now, it could play a new role in modern warfare.
Fusion startup Xcimer Energy is working with aerospace and defense company RTX to develop pulsed laser weapons to shoot down drone swarms, missiles or other threats.
Drone Deal Kicks Off Consolidation in Ukraine's 500-Company Industry
A drone company backed by Erik Prince-the Blackwater founder and an ally to President Trump-is buying one of Ukraine's leading makers of battlefield robots, an early sign of consolidation across the country's sprawling drone industry.
Swarmer, which was founded in Ukraine but is now based in Austin, Texas, said it is buying Ratel Robotics in a cash-and-stock deal valued at up to $224 million, making it one of the industry's largest tie-ups. Ratel makes unmanned ground vehicles, while Swarmer builds the artificial-intelligence software that lets aerial drones coordinate in swarms. Swarmer is also backed by an investment vehicle tied to former Google CEO Eric Schmidt.
Brent Holds Above $100 Amid Gulf Supply Risks
Oil prices rose in early European trading Thursday, with Brent holding above $100 a barrel after Wednesday's sharp rally as markets assessed escalating attacks on Gulf shipping and renewed Houthi strikes on Saudi Arabia.
Front-month Brent crude oil futures gained 0.2% to $101.36 a barrel, while front-month West Texas Intermediate crude oil futures rose 0.3% to $96.36 a barrel. Both benchmarks traded mixed earlier in the Asian day after settling Wednesday at their highest closing levels since May 22.
Bond Yields Edge Up as Investors Await ECB Rate Hike, U.S. Treasury Buybacks
Long-dated eurozone government bond and U.S. Treasury yields edged higher in early European trade, awaiting the European Central Bank's expected quarter-point rate hike and the U.S. Treasury's first buyback auction with increased volume.
Investors in eurozone bonds focus particularly on the ECB's monetary policy decision due at 1215 GMT and President Christine Lagarde's press conference after that. The near-complete certainty of a rate hike leaves Lagarde's remarks, particularly about inflation, as an important hint at the rate path ahead.
Trump's Top Advisers Confront Possibility That Iran War Lasts Through End of Term
WASHINGTON-Top White House advisers have raised privately with President Trump the prospect that the Iran war could drag on through the remainder of his term, U.S. officials said, a message at odds with Trump's public assurances of a swift victory.
In the Oval Office and Situation Room, Vice President JD Vance, Secretary of State Marco Rubio and others have discussed with the president that Tehran could continue to resist U.S. pressure under the blockade and other military tactics, potentially extending the conflict past Inauguration Day in January 2029, the officials said.
Five Takeaways From Day One of the Republican Convention
DALLAS-President Trump capped off the first day of the Republican Party's midterm convention here with a pledge to pay American adults $5,000 if the GOP keeps control of Congress in November, a last-ditch bid to prevent an electoral shellacking.
The extraordinary proposal, which Democrats immediately criticized as an attempt to buy votes, was the culmination of a marathon day of speeches. Republicans sought to paint Democrats as radical and out of touch with voters, though they at times struggled to come up with a unified message on the economy. And Democratic Sen. John Fetterman of Pennsylvania delivered a surprise video message.
With Close Calls on U.S. Warships, Iran Shows New Appetite for Escalation
Iran is increasingly trying to escalate its conflict with the U.S. as it seeks to break a stalemate in the Strait of Hormuz that is strangling its economy.
At least three times in the past week, Iranian forces have launched missiles at American warships, including an aircraft carrier, taking direct aim at the U.S. Navy in a way it hasn't done since the start of the war. Iran also fired a large missile salvo at U.S. forces stationed in Jordan on Wednesday.
Trump's Top Advisers Confront Possibility That Iran War Lasts Through End of Term
WASHINGTON-Top White House advisers have raised privately with President Trump the prospect that the Iran war could drag on through the remainder of his term, U.S. officials said, a message at odds with Trump's public assurances of a swift victory.
In the Oval Office and Situation Room, Vice President JD Vance, Secretary of State Marco Rubio and others have discussed with the president that Tehran could continue to resist U.S. pressure under the blockade and other military tactics, potentially extending the conflict past Inauguration Day in January 2029, the officials said.
South Korea Nears Agreement on Billions in U.S. Investments, a Win for Trump
The South Korean government is nearing the announcement of a major energy investment project in the U.S. to support America's artificial-intelligence build-out, a long-awaited development of the trade deal struck between Washington and Seoul last year.
The deal, potentially worth more than $100 billion, envisions South Korea financing the construction of up to eight nuclear power plants and a natural-gas project, according to people familiar with the matter.
Write to priscila.barrera@wsj.com
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