FX.co ★ US Futures Fall after Hot PPI Report

On Thursday, US stock futures experienced a decline following inflation data that surpassed expectations, thereby reducing the likelihood of a Federal Reserve rate cut in September. Futures for the S&P 500 dropped by 0.4%, the Nasdaq 100 also decreased by 0.4%, and the Dow Jones Industrial Average fell by over 100 points. The producer price index for July witnessed a significant increase of 0.9% month-on-month, marking the most substantial rise in three years. This uptick was largely due to elevated service costs and propelled the annual PPI to 3.3%. Meanwhile, the core PPI, which excludes volatile sectors such as food, energy, and trade, grew by 0.6% on a monthly basis and by 2.8% year-on-year. Additionally, jobless claims saw a reduction of 3,000, reaching 224,000, reflecting companies' hesitance to lay off workers despite a slowdown in hiring activities. However, continuing claims remain near their highest since 2021, totaling 1.95 million, indicating potential challenges in job placement. Among pre-market stocks, notable movers included Nvidia, which declined by 0.4%, Apple down 0.3%, Meta decreasing by 0.6%, Tesla down 0.6%, while Amazon and Microsoft saw slight positive movements of 0.3% and 0.2%, respectively.