Futures down: Dow 0.26%, S&P 500 0.13%, Nasdaq 0.04%
US consumer prices increase as expected in February
JPMorgan tightens lending to private credit groups, report says
Oracle shares rise on upbeat 2027 revenue forecast
Updates before markets open
By Johann M Cherian and Utkarsh Hathi
March 11 (Reuters) - Wall Street's main indexes were set for a lower open on Wednesday as investors assessed a key inflation report and awaited a pivotal announcement from the International Energy Agency about the release of crude oil reserves.
Energy prices whipsawed as traders weighed reports that Germany and Japan were looking at releasing oil reserves to stabilize supply ahead of a decision by the International Energy Agency, in the face of intensifying air strikes in the Middle East that are likely to ground shipping through the strategic Strait of Hormuz for a while.
Investors were also digesting a Labor Department report that showed consumer prices picked up in line with expectations in February as the cost of gasoline increased in anticipation of an escalating war in the Middle East.
Investors now see the Federal Reserve cutting interest rates by 25 basis points in October, compared with September seen before the report, according to LSEG-compiled data.
Remarks from President Donald Trump earlier this week offered markets some reassurance that the war might not be drawn out for months and oil prices, which had neared $120 a barrel earlier in the week, have since dropped to under $90 a barrel.
Signs of a softening jobs market are likely to further complicate the central bank's monetary policymaking.
"Until the Strait of Hormuz is opened and the turmoil in the Middle East simmers down, the Federal Reserve may step away from any action on interest rates," said Skyler Weinand, chief investment officer at Regan Capital.
"The Fed now has tariffs, potential tariff refunds, higher energy prices and weakening employment to sort through in order to get any kind of clarity on what to do next."
At 9:04 a.m. ET, Dow E-minis YMcv1 were down 123 points, or 0.26%, and S&P 500 E-minis EScv1 were down 8.5 points, or 0.13%. Nasdaq 100 E-minis NQcv1 were down 10.25 points, or 0.04%.
Wall Street's fear gauge, the CBOE volatility index .VIX, inched up 0.75 points to 25.72.
Meanwhile, Oracle <ORCL.N> predicted that the AI data center boom will power its revenue above estimates well into 2027, sending its shares up 10% in premarket trading.
A more than 3% jump in oil and gas prices weighed on shares of travel stocks such as American Airlines AAL.O and cruise liner Carnival CCL.N that were down marginally.
Remarks from Fed Vice Chair for Supervision Michelle Bowman are due later in the day and will be scrutinized for any policy direction.
Investors were also monitoring developments in the private credit space.
JPMorgan Chase <JPM.N> marked down the value of certain loans held by private-credit groups and is tightening its lending to the sector, a report said.
Ares Management ARES.N and Apollo Global APO.N were down 0.6% each.
Among others, Oilfield services firm SLB <SLB.N> lost 2% after saying Middle East tensions would hit its first-quarter results.
Campbell's <CPB.O> fell 5.2% after cutting its annual forecasts and warned of increasing pressure in the second half of the year from the revised U.S. tariffs.
Defense company AeroVironment AVAV.O dropped 11% after forecasting 2026 adjusted profit below estimates.
(Reporting by Johann M Cherian and Utkarsh Tushar Hathi in Bengaluru; Editing by Maju Samuel)
((johann.mcherian@thomsonreuters.com))