Major US stock futures primarily traded in green before the opening bell on Thursday, September 10 even as oil prices hit $102 following three consecutive sessions of losses on the Wall Street.
The US stock market is expected to gain today as Dow Jones futures advanced 0.15% to 52,506, S&P 500 stayed marginally up at 7,677.5, while Nasdaq was red at 29,375 by 4:39 am ET.
Stock futures were traded up despite several negative global cues, including US-Canada tensions and oil prices rally.
Brent crude extended its rally and crossed $102 a barrel as Iran vowed to intensify the conflict with the US, raising fresh concerns over oil flows through the Strait of Hormuz and the possibility of a prolonged disruption to Middle East energy supplies. As crude oil prices continue to gain, the recent gains in US stock futures appears more of a recovery after three straight losing sessions than a strong rally.
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Dow Jones and S&P 500 futures also climbed as investors closely watch two inflation reports due this week. On Thursday, investors track the U.S. Producer Price Index, for fresh indications on the Federal Reserve's interest rate move. Even though producer price usually receives less attention compared to Consumer Price Index data, due on Friday, any signs of rising input costs could raise fears that inflation pressures are increasing.
According to economists polled by Dow Jones, producer price index is expected rise 0.3% on a monthly basis and a 5.3% gain on an year over year basis. The Consumer Price Index is expected to climb 0.4% jump in August and 3.4% on anyearly basis. Following these release, focus will be on Federal Reserve's policy decision on interest rates due next week.
Speaking at Jackson Hole last month, Fed Chair Kevin Warsh said inflation remains a key concern, with both PCE and CPI measures running above the Fed's 2% target. He added that while no single measure is perfect, the data broadly point to persistent price pressures, making inflation the Fed's predominant focus for now. He said, "None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2 percent target. So the Fed's predominant focus right now should be on prices."
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