US stock futures were mixed on Thursday as investors braced for a busy session of economic data and corporate earnings. Dow Jones Industrial Average futures rose about 100 points, or 0.21%, while S&P 500 futures gained 0.13%. Nasdaq 100 futures slipped 0.17%, extending a three-day losing streak for tech-heavy indices.
The market's focus is squarely on the producer price index (PPI) report due at 8:30 a.m. ET, which could set the tone for the Federal Reserve's policy decision next week. Economists expect headline PPI to rise 0.4% month-over-month, with core PPI up 0.3%. A hotter-than-expected print could push Treasury yields higher and pressure growth stocks, while a softer reading might ease concerns about persistent inflation.
Meanwhile, Brent crude remained above $100 a barrel, hovering near $101, as geopolitical tensions in the Middle East continued to threaten supply. West Texas Intermediate (WTI) also stayed elevated, adding to worries about transportation costs and inflation expectations. According to Mark Haefele of UBS Global Wealth Management, the psychological impact of $100 oil is significant, but earnings growth and structural investment should remain more important for equities. This helps explain why futures are not signaling outright panic.
The 10-year Treasury yield was around 4.85%, near its highest level since 2023, after the Treasury's planned $6 billion buyback of longer-dated debt underwhelmed some market participants. Investors had hoped for a larger intervention. Thursday also brings another buyback operation and a $22 billion auction of 30-year bonds. A move toward 5% would make valuation pressure on technology and other long-duration stocks harder to ignore.
Across the Atlantic, the European Central Bank (ECB) is widely expected to raise its deposit rate by 25 basis points to 2.5%. The decision is almost fully priced in, so the focus will be on President Christine Lagarde's guidance. ING economists expect Lagarde to keep her options open and resist endorsing market pricing for three additional increases by June 2027. A more hawkish message would reinforce concerns that higher energy prices are pushing global policy tighter.
On the corporate front, American Eagle shares fell over 11% in premarket trading despite reporting earnings of 79 cents per share, well above expectations. Investors focused on weaker merchandise margins, a comparable-sales miss, and a one-off tariff refund that boosted profit. Apple remains in focus after unveiling the $1,999 iPhone Duo, its first foldable phone, with Apple stock dipping 1.5% as the market reacted to the pricing and features.
After the close, Oracle and Adobe will report earnings. Oracle will be judged on AI-cloud demand and spending, while Adobe faces another test of whether AI adoption can accelerate recurring revenue. These reports could provide clues about the sustainability of the AI-driven rally in tech stocks.
With PPI, the ECB, and a slew of earnings, Thursday promises to be a pivotal day for markets. The data could either reinforce the recent selloff or provide some relief, depending on the numbers and the tone of central bank commentary.
This article is for informational purposes only and does not constitute financial advice.
