8 hrs ago
US Stock Futures Rise as Oil Retreats Before CPI Data
US stock futures rose on Friday after stocks had a difficult day.
Investors hoped prices would recover.
Oil prices dropped sharply, which helped markets feel less pressured.
However, oil was still much more expensive than at the start of the week.
Expensive oil can make fuel and other goods cost more, increasing inflation.
Traders were waiting for the United States inflation report, called the CPI.
The report could influence what the Federal Reserve does with interest rates next week.
Some companies moved sharply before trading began, including Oracle, Adobe and ACV Auctions.
Fighting and shipping risks in the Middle East also added uncertainty.
Dow, S&P 500 and Nasdaq-100 futures each rose about 0.6% Friday.
Brent crude fell $4 to $104.14 after briefly exceeding $108, but remained up about 9% for the week.
Investors awaited the August Consumer Price Index report for clues about the Federal Reserve’s September rate decision.
Higher energy prices have lifted bond yields, pushed US diesel above $6 per gallon and raised inflation concerns.
Oracle gained 7%, Adobe fell more than 4%, and ACV Auctions surged about 44% after Copart agreed to acquire it.
- Who
- US investors, the Federal Reserve, oil traders and companies including Oracle, Adobe, ACV Auctions and Copart.
- What
- US stock futures rose as oil prices retreated ahead of the August Consumer Price Index report.
- Where
- US financial markets, amid wider energy and shipping concerns connected to the Middle East.
- When
- Friday, 11 September, ahead of the Federal Reserve’s September 15–16 meeting.
- Why
- Investors expected the CPI report to influence interest-rate expectations, while retreating oil prices supported hopes for a market rebound.
Market Rebound
Inflation Risks
Impact of oil prices
Market Rebound
The sharp retreat in crude prices reduced immediate pressure on stocks and supported hopes for a rebound.
Inflation Risks
Oil remained about 9% higher for the week, and elevated energy costs could continue pushing inflation upward.
Interest-rate outlook
Market Rebound
A softer inflation reading could shape expectations for a less restrictive Federal Reserve rate decision.
Inflation Risks
Hotter-than-expected Producer Price Index data and higher gasoline costs could strengthen expectations of continued rate pressure.
Economic demand
Market Rebound
Lower oil prices could ease some pressure on consumers and businesses.
Inflation Risks
The International Energy Agency cut its consumption forecast and said demand may need to decline further.
Key facts
- Dow futures
- Up 299 points, or 0.6%.
- S&P 500 futures
- Up 0.6%.
- Nasdaq-100 futures
- Up 0.6%.
- Brent crude
- Down $4 to $104.14 after rising above $108; still up about 9% for the week.
- US diesel
- Rose above $6 per gallon for the first time.
- Upcoming data
- The August Consumer Price Index report was expected to show faster headline inflation than in July.
- Federal Reserve meeting
- Scheduled for September 15–16.
Sources
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