US stock futures slumped for a 3rd consecutive day, unable to find traction, and trading at session lows with tech underperforming as Treasury yields pushed higher keeping risk appetite firmly in check ahead of the latest print on US factory prices and earnings from Oracle. As of 8:15am ET, S&P futures are down 0.2%, with Nasdaq futures lagging, and down 0.
5%. Pre-market, MegaCap Tech stocks are mixed, led by AAPL and META +1.0%.
Overnight, TSMC reported a 53% increase in monthly sales amid strong AI infrastructure demand. Incremental macro news flow were largely muted since yesterday’s close: Trump promised $5k division if GOP wins the midterm, which sparked fresh fiscal stability concerns and pushed yields to fresh 3 year highs, as the 10Y tops 4.88%.
The USD reversed an earlier drop to trade at session highs as the Yen slumps. Commodities are mixed: Oil higher (WTI +1.7%), while precious metals are lower; base metals and Ags are higher.
US economic data slate includes weekly jobless claims and August PPI (8:30 a.m.) and August existing home sales and July wholesale inventories (10 a.
m.). Fed speakers remain in external communications blackout period ahead of Sept.
15-16 FOMC meetingIn premarket trading, Mag 7 stocks are mixed but fading fast: Meta rises 1.3% as JPMorgan upgrades to overweight, citing upside potential after the social media giant launched its AI assistant (Apple +1.1%, Alphabet +0.
2%, Microsoft little changed, Amazon -0.1%, Nvidia -0.5%, Tesla -0.
7%Copper stocks are falling after Reuters reported that the White House has not yet made a decision on refined copper tariffs as it weighs concerns of higher prices raising manufacturing costs against the potential benefits of encouraging more domestic mining, citing two people familiar with the matter.AeroVironment (AVAV) rises 4% after the drone maker reported revenue for the first quarter that beat the average analyst estimate.American Eagle (AEO) falls 14% after the apparel firm’s second-quarter total comparable sales fell short of the average analyst estimate.
Analysts note that strength at its aerie brand was more than offset by weakness at AE.Cooper (COO) tumbles 16% after the healthcare supplies maker cut its adjusted earnings-per-share and revenue guidance for the full year. Analysts note weakness in the firm’s CooperVision unit weighing on its sales forecast.
JetBlue (JBLU) falls 2% after the airline cut its available seat miles forecast for the third quarter.Kinetik (KNTK) climbs 4% as the energy pipeline company partly owned by Blackstone is in the early stages of exploring options, including a sale, according to people familiar with the matter.Macy’s (M) slips 1% as investors weigh much better-than-expected comparable sales and adjusted EPS in the second quarter against a less robust third-quarter guidance.
Navan (NAVN) slumps 15% after the software company gave an outlook that analysts said pointed to weaker trends in the second half of the year, despite overall solid growth.Rackspace Technology (RXT) climbs 13% after the company said it had joined the Nvidia Cloud Partner Program.In other corporate news Citadel Securities told regulators that prediction market contracts linked to publicly-traded companies should be overseen by the SEC.
Boring Co. secured $3 billion in fresh funding backed by the UAE, valuing Elon Musk’s tunneling startup at $23 billion.Sentiment remains muted as inflationary signs grow: Brent is now trading above $103 (with Shanghai trading at $115!
) as Iran vowed it was prepared for a more intense war, LME copper futures hit new records, and global tanker freight rates reached all-time highs.Investors are also 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 number, followed by CPI on Friday, are key for market direction. With PPI components feeding directly into the Fed’s preferred inflation gauge and Fed’s Waller saying that the August data will heavily influence his decision, a hot print could materially reprice September rate-hike odds, currently at 61%.
Stocks currently have greater sensitivity to bond yields, with S&P 500 equity risk premium relative to Treasury yields at lowest since 2002.“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.
”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. Separate figures from Adobe Inc.
will offer another window into how software giants are navigating the challenge from AI.“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.
”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.
”Still, while Trump's offer was met with skepticism by the market, it adds to concerns about erratic policymaking at a time when Bessent is striving to keep yields down. Yesterday’s buyback announcement disappointed many who had expected more than the up to $6 billion announced: The “Treasury brought a pea shooter to a tank battle,” said Elias Haddad, Global Head of Markets Strategy at Brown Brothers Harriman.Still, the ‘Trump dividend’ would cover the cost of a shiny new iPhone.
Part of the sticker shock had been well flagged, with memory prices for smartphones surging as the AI buildout sucks up supply. Hyperscaler spending will be back in the spotlight after the close when Oracle reports — it’ll be a big test of market tolerance for AI spending given the company’s massive debt load.There’s no signs of a slowdown in the AI buildout yet.
TSMC posted the second fastest year-on-year monthly sales print for 2026, with the company struggling to meet overwhelming demand. Microsoft’s CFO said at an investor conference that Azure was supply constrained, while AI chipmakers in China are reportedly raising processor prices.The upside in oil has also weighed on equities with the Stoxx 600 down 0.
2% after erasing an earlier gain. European shares slipped for a third day ahead of an ECB meeting that’s expected to deliver an interest-rate increase and could offer clues on further policy tightening. Here are the biggest movers Thursday:FirstRand shares gained as much as 4.
5%, the most since May, after the South African lender reported full-year results, which JPMorg