What is Driving the Markets Today?

U.S. stock futures are rising ahead of the release of long-awaited inflation data, which could influence the upcoming Federal Reserve decision on monetary policy. Meanwhile, the European Central Bank is expected to keep interest rates unchanged when it announces its policy on Thursday. On the corporate front, Adobe shares will be in the spotlight when the company reports its quarterly results after the market closes.

1. U.S. Market Futures
   Dow Jones futures rose by 35 points or 0.1%, S&P 500 futures rose by 8 points or 0.1%, and Nasdaq 100 futures rose by 39 points or 0.2%. On Wednesday, indexes closed mixed as traders assessed Oracle’s impressive report and the unexpected drop in producer prices in August, which strengthened bets on an upcoming rate cut by the Fed. The S&P 500 and Nasdaq Composite hit record highs, largely supported by Oracle’s 36% rally, while the Dow Jones fell by 0.48%.
2. Consumer Price Index (CPI)
   Focus is turning to the August Consumer Price Index, which is expected to show a year-over-year increase of 2.9%, up from 2.7% in July. The Fed will have to balance the cooling labor market with maintaining price stability, potentially creating a risk of stagflation. The Producer Price Index report showed an unexpected decline in August, with tariff-affected categories showing moderate prices.
3. European Central Bank (ECB)
   The ECB will announce its decision on Thursday and is expected to leave interest rates unchanged at 2%. The debate between supporters of maintaining the current rates and those in favor of cuts will likely be more heated than markets anticipate. Comments from ECB President Christine Lagarde and higher-than-expected inflation support expectations for stable policy.
4. Adobe
   Adobe will publish its quarterly results after the market closes. The company is expected to report earnings per share of $5.18 on revenue of $5.91 billion. Sentiment around the company is negative due to cyclical and structural challenges and questions about when AI implementation will begin to deliver results.
5. Oil and Gold Prices
   Oil prices are slightly down due to weak consumer demand in the U.S., after rising sharply earlier in the week due to geopolitical uncertainty. U.S. crude oil inventories increased by 3.9 million barrels, and gasoline by 1.5 million barrels. Gold prices are slightly lower but remain close to record highs, as the Fed is expected to cut interest rates, making the metal more attractive as an investment.