Futures Advance as Oil Retreats and CPI Data Looms

U.S. stock futures pointed to a higher open on Friday, breaking a four-day losing streak for major indices, as traders focused on the release of August consumer price inflation data later this morning.

As of 8:00 a.m. ET, S&P 500 and Nasdaq 100 futures each gained 0.6%, according to Zero Hedge. NDTV Profit reported similar moves, with Nasdaq futures climbing 0.56% to 29,297.5, Dow Jones futures advancing 0.54% to 52,374, and S&P 500 futures rising 0.49% to 7,636 as of 6:06 a.m. ET.

The rebound follows a weak session on Thursday, when the Dow Jones Industrial Average fell more than 300 points (0.6%), the S&P 500 declined 0.6%, and the Nasdaq Composite slipped 0.7%, marking the fourth consecutive losing day for major benchmarks, according to NDTV Profit.

**Oil Retreat Provides Relief**

A key catalyst for the morning rally was a decline in crude oil prices. Brent crude fell below $104 a barrel after nearing the $109 mark, amid reports that Gulf states are considering a meeting with Iranian officials to discuss the future of the Strait of Hormuz, Zero Hedge reported. NDTV Profit cited uncertainties over supply through the strait as a factor.

WTI crude dropped 3% overnight, Zero Hedge said, although the benchmark remains on track for a roughly 8% gain since Monday. The International Energy Agency has warned that higher prices would hit consumption, both sources noted.

While the dip in oil buoyed risk assets, Zero Hedge pointed to renewed uncertainty in the Middle East, including Houthi rebels seizing a key Yemeni port city and striking Saudi oil infrastructure, and noted that U.S. retail diesel prices topped $6 a gallon for the first time.

**All Eyes on CPI Data**

The week’s most anticipated catalyst is the August consumer price index report, due at 8:30 a.m. ET. Economists polled by Bloomberg forecast the CPI to have advanced 0.4% in August from the prior month, driven in part by higher gasoline costs, NDTV Profit reported. The core CPI, excluding food and energy, is expected to show a more moderate 0.2% increase.

Zero Hedge noted that money markets price a 67% chance of a Federal Reserve rate hike at next week’s Sept. 15-16 policy meeting. Fed speakers remain in a quiet period ahead of that meeting, Zero Hedge added. Bloomberg Economics expects firmer core PCE forecasts after the CPI print, raising the odds of a rate hike, according to Zero Hedge’s report.

The inflation reading arrives as global bond yields hover near multiyear highs. Yields on the 2-year and 10-year Treasury notes were 3.2 basis points and 2.4 basis points lower, respectively, on Friday morning, Zero Hedge reported.

**Oracle Results Lift Tech Sentiment**

Oracle Corp. shares jumped in premarket trading after the software company reported better-than-expected fiscal first-quarter earnings and highlighted strong demand for its artificial intelligence cloud services. Oracle gained 5.5% in premarket trading, according to NDTV Profit, while Zero Hedge reported a rise of 6% to 7%. The company booked new AI cloud contracts worth over $30 billion, pushing its remaining performance obligations (backlog) to a record $664 billion, exceeding analyst projections of $639.89 billion, NDTV Profit said. Zero Hedge added that Oracle’s cloud infrastructure revenue jumped 121% to $7.4 billion, beating estimates.

“We had the Oracle numbers as a reminder that there’s a tech story that’s still very, very vibrant,” Guy Miller at Zurich Insurance told Zero Hedge.

Also supportive for the AI trade, Microsoft is planning to more than triple its data center capacity to 38 gigawatts by 2032, Zero Hedge reported.

**Individual Movers**

The so-called Magnificent Seven stocks were mostly higher in premarket trading, Zero Hedge reported: Nvidia +0.7%, Amazon +0.7%, Meta +1.1%, Alphabet +0.5%, Microsoft +0.3%, while Tesla slipped 0.2% and Apple edged down 0.06%.

Elsewhere, Adobe fell 4% after the company gave a sales outlook that narrowly missed analysts’ estimates, raising concerns about AI monetization for software incumbents, according to Zero Hedge. Kroger slipped 2% after trimming its annual sales guidance, a sign of intense competition in grocery spending. Copart rose 4% after announcing a deal to acquire ACV Auctions for $10.50 per share in cash, sending ACV shares up 44%. NuScale Power declined 4% after UBS cut its recommendation to sell, citing increased competition.

**Market Direction**

Polymarket odds show a 64% probability that the S&P 500 opens higher on Friday, according to a summary report. The mixed signals — an overnight retreat in oil alongside persistent geopolitical risk, and a strong tech earnings update set against a pivotal inflation report — leave traders looking to the 8:30 a.m. CPI release for the near-term direction.