S&P 500 futures remained largely unchanged on Wednesday night, following a day marked by record highs. Investors on Wall Street are closely monitoring developments as they await an important consumer inflation gauge. Futures linked to the broad index traded near the flatline, with Nasdaq 100 futures showing a slight decline of 0.1%. Meanwhile, Dow Jones Industrial Average futures decreased by just 2 points.
Wednesday's market activity follows a remarkable second consecutive day of all-time closing highs for the S&P 500. This surge was primarily driven by a significant rally in Oracle's stock. The Nasdaq Composite index finished marginally above its previous close, while the Dow experienced a drop of more than 200 points. Investors expressed optimism over Oracle's growth outlook for its cloud business, which contributed to a stunning 36% increase in the stock price during the session. This marked Oracle's best performance since 1992, adding an impressive $244 billion to its market capitalization.
The excitement surrounding Oracle's growth also had a ripple effect on the broader market, particularly within the artificial intelligence sector. Stocks related to AI, including Broadcom, AMD, and Micron, experienced gains, providing investors with a silver lining amid an otherwise challenging trading day.
As traders digest these developments, all eyes are set on the August consumer price index, which is scheduled for release at 8:30 a.m. ET on Thursday morning. Economists surveyed by Dow Jones anticipate that the index will rise by 0.3% on a monthly basis, leading to an annual gain of 2.9%. When excluding the often volatile categories of food and energy, the core CPI is expected to increase by 0.3% from July, reflecting a year-over-year rise of 3.1%.
This upcoming CPI data follows a recent report on the producer price index (PPI), which revealed an unexpected decline of 0.1% for the month. On a yearly basis, however, the PPI showed a rise of 2.6%. According to Julien Lafargue, chief market strategist at Barclays Private Bank, the implications of the PPI's decline are significant. He noted that unless the CPI delivers a notable upside surprise, investors are likely to maintain a cautious or dovish outlook moving forward.
In summary, the current state of the S&P 500 futures and the broader market reflects a complex interplay of optimism driven by stock performances like Oracle's and the anticipation of critical economic indicators such as the CPI. Investors are urged to stay informed as these developments unfold.
