US Stocks Muted Before PPI Data, Oracle Earnings: Markets Wrap
(Bloomberg) — US stock futures struggled for traction and Treasury yields pushed higher as risk appetite remained firmly in check ahead of the latest print on US factory prices and key tech earnings.
S&P 500 contracts were little changed after a three-day run of losses. Copper miners fell in early trading as prices for the metal slumped. Brent crude topped $102 a barrel, with both Iran and the US digging in for a protracted war. The dollar climbed. Thirty-year Treasury yields rose before a $22 billion auction.
Investors are bracing for a busy calendar that could provide fresh catalysts for markets. The packed agenda comes after global yields climbed to the highest in years as the war in the Middle East pushed oil prices higher, prompting traders to bet on tighter monetary policy across the globe.
First up is the latest European Central Bank interest rate decision, with a hike already priced in and the focus instead on guidance. Earnings from Oracle Corp. will offer a fresh read on the outlook for artificial intelligence.
Meanwhile, the August producer price index could offer clues on the course of inflation for the rest of the year and what it means for US rates.
“Today’s PPI report matters, but probably not enough on its own to change the Fed’s decision next week,” said Santiago Mateo Yanguas at CaixaBank AM. “That said, a significant upside or downside surprise could still move markets today by shifting expectations for the rate path beyond the next meeting, particularly in Treasury yields and interest rate-sensitive sectors.”
Europe’s Stoxx 600 fell 0.1% ahead of the ECB decision and a briefing by President Christine Lagarde. Regional bonds were little changed. With money markets already favoring three further moves after today’s expected hike by the end of next year, traders say the likelihood of a hawkish surprise is slim.
“We don’t think that the ECB would be more hawkish than current pricing,” noted Mohit Kumar at Jefferies. “We expect Lagarde to keep the future path of monetary policy data-dependent and not lean into a series of rate hikes.”
Oracle reports after the US close with its shares down 17% this year, sharply underperforming tech peers as traders punished the firm over concerns about heavy capital spending and leverage. While cloud unit sales are projected to have more than doubled in the first fiscal quarter, recent market moves show that strong earnings aren’t always enough to win investors over.
“While quarterly results may trigger short-term volatility, we see the underlying earnings trend as the more important driver of long-term equity performance,” said Francisco Simon at Santander Asset Management. “The structural growth story remains intact, and that is ultimately what matters.”
Separate figures from Adobe Inc. will offer another window into how software giants are navigating the challenge from AI.
Meanwhile, markets largely shrugged off President Donald Trump’s promise to give adult US citizens a $5,000 dividend if Republicans retain control of both houses of Congress.
“Markets appear to assign a very low probability to the measure becoming law, given the significant fiscal cost and the political hurdles it would face in Congress,” said CaixaBank’s Yanguas. “Unless the proposal gains tangible legislative support, investors are likely to treat it more as campaign rhetoric.”
What Bloomberg Strategists Say:
“Worries around inflation persistence are rightly rising, putting a floor on yields. Part of the problem is simply how long the Strait of Hormuz disruption has lasted. Central banks need to determine whether the initial shock is feeding into wages and broader price setting. That evidence arrives with another lag. This pushes out the point at which central banks, and markets, can confidently look toward the end of the tightening cycle.”
Corporate News:
Grab Holdings Ltd., the biggest ride-hailing and food-delivery firm in Southeast Asia, is in talks to buy a majority stake in Singapore-based buy-now-pay-later platform Atome Financial, according to people familiar with the matter. Boring Co. secured $3 billion in fresh funding backed by the United Arab Emirates and affiliated investment entities, valuing Elon Musk’s tunneling startup at $23 billion. Nasdaq Inc. is investing $100 million in Payward, the parent of cryptocurrency exchange Kraken, according to people familiar with the matter. Apple Inc. unveiled the company’s first foldable smartphone during a wide-ranging event Wednesday, betting that a new category can energize growth for its biggest-selling lineup. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 7:31 a.m. New York time Nasdaq 100 futures fell 0.4% Futures on the Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 fell 0.1% The MSCI World Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1624 The British pound fell 0.1% to $1.3533 The Japanese yen fell 0.3% to 154.09 per dollar Cryptocurrencies
Bitcoin fell 0.4% to $77,979.07 Ether fell 0.2% to $2,467.23 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.86% Germany’s 10-year yield was little changed at 3.45% Britain’s 10-year yield advanced two basis points to 5.28% Commodities
West Texas Intermediate crude rose 1.4% to $97.36 a barrel Spot gold fell 0.3% to $4,386.71 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Nicholas Reynolds.
©2026 Bloomberg L.P.
