U.S. stock futures edged downward early Thursday as market participants navigated a murky mix of trade-related developments, escalating geopolitical tensions, and awaited key inflation indicators. President Donald Trump signaled a possible delay in implementing new tariffs, but investors remained cautious amid uncertainty over Middle East developments.
Cautious Tone Sets the Stage
By 03:37 ET, 07:37 GMT, futures pointed to a sluggish open on Wall Street. Dow Jones Industrial Average futures dipped 106 points (-0.3%), S&P 500 futures slipped 13 points (-0.2%), and Nasdaq 100 futures declined by 48 points (-0.2%). This followed a subdued trading session on Wednesday, with the Dow ending the day flat and modest losses seen on the S&P 500 and Nasdaq.
Traders continue to weigh May’s softer-than-anticipated consumer price index (CPI) report, assessing how it might impact the Federal Reserve’s future interest rate strategy and broader economic momentum.
Trade Developments Cloud Sentiment
Hopes for progress in U.S.-China trade negotiations were muted by a lack of firm commitments. Despite President Trump characterizing a proposed agreement as “great,” analysts questioned the longevity of any potential deal, especially since restrictions on exports of advanced AI chips to China remain intact.
Trump also revealed plans to send formal communications to multiple nations regarding prospective trade arrangements. Though 17 countries are reportedly in talks, only the UK has officially concluded an agreement. The President mentioned that the current 90-day delay on tariffs, which is set to expire on July 8, could be extended—but made no guarantees.
Inflation Gauge in Spotlight
Investors now turn their focus to the Producer Price Index (PPI) for May, due for release later today. Economists forecast a monthly increase of 0.2%, which would contrast April’s 0.5% decline. Year-over-year, PPI is expected to rise to 2.6% from 2.4%.
April’s drop in wholesale prices—especially in the travel and leisure sectors—marked the steepest decline since 2009. Analysts say reduced consumer spending on tourism may reflect broader concerns about international policy uncertainty.
Given that categories like travel, accommodation, and financial services are factored into the Fed’s preferred inflation measure, today’s data could influence expectations for interest rate decisions in the coming months.
Oracle Soars on Strong Forecast
Oracle Corporation (NYSE:ORCL) surged in after-hours trading after boosting its revenue outlook for fiscal 2026. The company now projects total revenue to exceed $67 billion, revising its annual growth forecast upward from 15% to nearly 17%.
CEO Safra Catz attributed the improved forecast to robust demand for Oracle’s cloud-based software and AI infrastructure services. Cloud-related revenue is now expected to grow by over 40%—a significant leap from last year’s 24% gain.
While analysts were encouraged by the positive guidance, some cautioned that sustaining such growth would require substantial capital investment, which could pressure the company’s cash flow.
Oil Markets Retreat After Rally
Crude oil prices retreated Thursday morning, trimming some of Wednesday’s sharp gains. Brent crude declined by 1.3% to $68.89 a barrel, and West Texas Intermediate dropped 1.2% to $67.33.
Wednesday’s surge—over 4%—was driven by improved sentiment around U.S.-China trade talks and heightened geopolitical anxiety in the Middle East. U.S. officials have authorized the voluntary departure of military families from the region, amid growing concerns about a potential confrontation with Iran.