Dow futures dipped slightly Wednesday morning as traders waited nervously for producer price inflation data that could influence the Federal Reserve’s next rate decision.
The PPI report has Wall Street on edge after major indexes hit record highs recently.
Investors are walking a tightrope as they want inflation to stay manageable without being so strong that it forces the Fed to get more aggressive with rate hikes.
The mixed sentiment reflects broader uncertainty about whether the current rally can continue if economic data starts pointing toward persistent price pressures.
5 things to know before Wall Street opens
1. Stock futures moved in different directions Wednesday morning, with tech-heavy indexes climbing while the Dow pulled back.
The S&P 500 and Nasdaq got a boost from Oracle’s positive earnings forecast, which had investors feeling better about technology companies again.
But there’s plenty of caution in the air as traders wait for producer price numbers that could tell us whether inflation is really under control.
The Dow’s decline shows not everyone’s convinced this rally has legs, especially with the Fed still making decisions about interest rates.
Trading was busy before the market opened, with investors trying to figure out if recent record highs can continue or if today’s inflation data might spoil the party.
2. Pre-market trading has seen notable volatility in several major stocks.
Oracle leads gainers, soaring over 20% after unveiling an impressive surge in multicloud database revenue, up more than 1,500% on the year, riding AI-fueled demand.
Tesla stock has also gained, buoyed by renewed optimism for its AI initiatives and core vehicle production metrics.
On the losing end, Walgreens Boots Alliance tumbled after its revenue warning and the announcement of additional restructuring efforts, weighing on the healthcare sector.
CVS Health and Brown-Forman are among the notable decliners due to weak outlooks and persistent earnings pressures.
3. Today’s producer price numbers for August have everyone’s attention since they could signal where inflation is really heading.
Economists are expecting a 0.3% monthly increase, which would be more manageable than July’s surprisingly hot reading that got people worried about sticky prices again.
These figures will heavily influence what the Fed does next week at its meeting. If prices came in hotter than expected, it might kill hopes for rate cuts anytime soon.
But if the numbers look softer, it could give the central bank more room to ease up on policy. Traders will be watching both the headline number and the core reading to get the full picture.
4. Tech stocks are showing strength on the charts, with the Nasdaq pushing past previous highs thanks to companies like Oracle, Amazon, and Broadcom leading the charge.
The index is bumping up against resistance around 24,250, but has solid support at 23,691 if things turn south.
The S&P 500 is stuck in a narrow range between 6,490 and 6,512, though a break above 6,533 could signal more gains ahead.
The Dow is moving sideways with 45,000 as the key level bulls need to hold. While some indicators suggest markets are getting overbought, today’s inflation data could be the catalyst that pushes indexes in either direction.
5. Markets drifted on Wednesday as everyone waited for US inflation data. Asia closed down after China’s numbers came out, Europe stayed flat on economic worries, and the dollar gained ground.
Emerging markets played it safe while gold held steady. Today’s producer price report will probably decide where money goes next globally.
The post Dow futures in red ahead of August PPI data: 5 things to know before Wall Street opens appeared first on Invezz
