US stock market futures edged higher on Thursday, with the Dow Jones, S&P 500, and Nasdaq all in green ahead of a critical inflation update. The August Consumer Price Index (CPI), due at 8:30 a.m. ET, is expected to show prices rising 2.9% year-on-year, up from 2.7% in July, putting traders on edge about how sticky inflation could shape Federal Reserve policy.
The modest premarket gains — Dow futures up 76 points, S&P 500 and Nasdaq futures each up about 0.2% — come after a record-setting Wednesday session for the broader market.
Optimism has been fueled by expectations that the Fed will cut rates by 25 basis points next week, with markets pricing in a 90% probability. But the CPI print will be a decisive test, as even a slight upside surprise could limit the scope for further easing this year.
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Beyond macro headlines, tech stocks remain the key driver of sentiment. Oracle extended its historic rally with another premarket rise, while Synopsys, Nvidia, and Broadcom also gained.
Dow, S&P 500, and Nasdaq futures today
As of early trading, all three major US futures were in positive territory:
- Dow Jones Industrial Average futures (YM=F) gained 76 points, or 0.17%, to 45,616.
- S&P 500 futures (ES=F) edged higher by about 0.2%, lifting the index from Wednesday’s record highs.
- Nasdaq 100 futures (NQ=F) also advanced roughly 0.2%, supported by strength in big tech.
These modest gains follow a muted but milestone-setting Wednesday, when the S&P 500 and Nasdaq both closed at fresh records.
Why is today’s CPI report so important?
The spotlight is squarely on the August Consumer Price Index (CPI), due at 8:30 a.m. ET. Economists expect the annual headline inflation rate to climb to 2.9%, up from 2.7% in July, signaling that price pressures remain sticky.
Two key questions are driving investor anxiety:
- Will Trump’s tariffs lift consumer costs? Wholesale inflation cooled in August, but traders are watching for evidence that the White House’s new trade levies are starting to filter into retail prices.
- Will the Fed stay on track for cuts? Markets are pricing in a 90% chance of a 25 basis point rate cut at next week’s Federal Reserve meeting. However, hotter-than-expected inflation could limit the scope for further easing this year.
The CPI release, coupled with weekly jobless claims due later in the day, is expected to set the tone for trading.
Tech stocks continue to dominate premarket action
Tech remains the market’s heartbeat this week, with several names drawing strong premarket moves:
- Oracle (ORCL) extended Wednesday’s record-breaking rally, adding another 1.5% premarket after a 36% surge that lifted its market value by more than $250 billion.
- Synopsys (SNPS) rebounded 3%, recovering from its steepest drop on record after warning of weakness in China due to US export restrictions.
- Nvidia (NVDA) and Broadcom (AVGO) also gained slightly, riding the wave of optimism around data center demand.
Meanwhile, Alibaba (BABA) shares climbed nearly 3% after reports the company is seeking to raise $3.2 billion through a convertible note offering — the largest such deal of 2025.
Earnings to watch: Kroger and Adobe
On the earnings calendar, Kroger (KR) and Adobe (ADBE) will report results later today. Both are seen as bellwethers: Kroger for insights into US consumer demand, and Adobe for a read on AI-driven enterprise software spending. Their numbers could spark sector-specific volatility that spills into broader markets.
Oil prices steady as geopolitical risks rise
Oil held firm after three straight days of gains. Brent crude (BZ=F) hovered around $67 a barrel, while West Texas Intermediate (CL=F) traded near $63.
Prices remain sensitive to geopolitical developments after President Trump suggested fresh tariffs on India and China — the biggest buyers of Russian crude — as leverage to pressure Moscow over its war in Ukraine. Traders are weighing whether Washington will act unilaterally or wait for EU alignment before imposing additional measures.
What does this mean for investors?
Today’s CPI reading could decide whether September’s expected Fed cut will be followed by a series of reductions or just a one-off move.
A hotter print risks curbing the rally, while a softer number may fuel another leg higher in stocks, particularly in tech and rate-sensitive sectors.
For now, Wall Street seems cautiously optimistic. Futures gains, tech momentum, and steady oil prices all suggest investors are positioning for inflation to stay contained — but with tariffs, trade risks, and Fed policy all colliding this month, volatility is almost guaranteed.
FAQs:
Q1: Why are US stock market futures higher today?
A1: Futures are up as investors await CPI inflation data and bet on a Fed rate cut.
Q2: Which top stocks are moving in premarket trading?
A2: Oracle, Synopsys, Nvidia, Broadcom, and Alibaba are leading today’s premarket moves.