U.S. stock futures were mixed Wednesday as investors awaited fresh inflation data. Economists expect the annualized producer price index (PPI) for final demand in August to match July’s pace, highlighting persistent inflation pressures ahead of the Federal Reserve’s key rate decision next week. Meanwhile, Oracle (NYSE:ORCL) posted a blockbuster booked revenue forecast, boosting pre-market trading, while Novo Nordisk plans significant workforce reductions.
Futures Flat Amid Earnings and Inflation Focus
U.S. futures hovered near the flatline as traders analyzed Oracle’s earnings and anticipated the week’s first inflation readings. By 03:38 ET, S&P 500 futures had climbed 21 points (0.3%), Nasdaq 100 futures rose 70 points (0.3%), and Dow futures were largely unchanged.
Wall Street’s main indexes gained in the previous session, supported by expectations that the Fed could cut rates next week. A downward revision to U.S. employment figures for the year through March suggested potential labor market cooling before President Donald Trump’s import tariffs in April. Following the release, odds of a 25-basis-point Fed cut at the September 16-17 meeting remained largely unchanged, while Treasury yields moved higher.
“The [Bureau of Labor Statistics] revision strengthened the case for Fed easing, but Powell already has plenty of labor justification to cut […] and the actual number […] didn’t deviate from the rough consensus range,” analysts at Vital Knowledge said in a note.
PPI in Focus
Attention now turns to August’s PPI release, marking the first major inflation gauge for the final month of Q3. A separate consumer price measure is due Thursday. Economists project the PPI will show a 3.3% annualized rise, matching July’s figure.
Persistent price gains may intensify concerns that the Fed faces a balancing act: containing inflation while supporting maximum employment. Still, ING analysts said the data should pose “no barrier” to a Fed rate cut, noting that policymakers have signaled a potential reduction to support the labor market despite inflation risks.
Trump-related concerns over central bank independence eased after a federal judge ruled he cannot fire Fed Governor Lisa Cook.
Oracle Shares Jump on Strong Backlog
Oracle shares surged in after-hours trading after projecting a record booked revenue figure for its AI-enhanced cloud unit. Frankfurt trading mirrored the surge, with shares rising more than 30%.
Oracle expects its Cloud Infrastructure division to surpass $500 billion in booked revenue, reflecting strong demand for its AI-powered offerings. CEO Safra Catz said the firm has made AI reasoning models—including OpenAI’s ChatGPT and xAI’s Grok—available to customers.
Remaining performance obligations (RPO), Oracle’s main measure of booked revenue, soared 359% year-over-year to $455 billion for the quarter ending August 31. Catz added that “several additional multi-billion-dollar” clients are expected to sign in the coming months.
“RPO stole the show […], reinforcing confidence in Oracle’s acceleration narrative,” analysts at Jefferies said in a note.
Despite the strong backlog, overall fiscal Q1 results were mixed: adjusted EPS came in at $1.47 and revenue at $14.93 billion, slightly below FactSet estimates of $1.48 per share and $15.04 billion.
Novo Nordisk Plans Job Cuts
Novo Nordisk (NYSE:NVO) announced it will cut 9,000 jobs worldwide, roughly 11.5% of its 78,400-strong workforce, including 5,000 roles in Denmark. The move aims to reduce costs and streamline operations for its Wegovy weight-loss and Ozempic diabetes treatments. Shares in Copenhagen rose in early trading.
The restructuring is expected to generate annual savings of 8 billion Danish crowns ($1.27 billion) by 2026, though one-off charges of 9 billion crowns are anticipated in Q3. About 1 billion crowns in savings are expected in Q4. These funds will be reinvested in diabetes and obesity growth opportunities.
CEO Mike Doustdar, who took the helm last month, said the changes will simplify the organization and allow a sharper focus on the company’s largest segments: diabetes and obesity treatments.
Oil Prices Rise on Geopolitical Tensions
Crude prices climbed amid Middle East tensions and concerns that further restrictions on Russian supply could tighten global markets. As of 03:39 ET, Brent futures rose 0.7% to $66.86 a barrel and WTI futures gained 0.8% to $63.10 a barrel.
Markets reacted to Israel’s strike on Hamas leadership in Doha, raising regional geopolitical concerns, and Trump’s call for steep EU tariffs on India and China over Russian energy imports. If enacted, these tariffs could curb global supply if major buyers yield, though both countries have shown little intent to halt Russian purchases.
Additionally, Poland reported shooting down Russian drones over its territory during a large-scale attack in western Ukraine, describing the incursion as an “act of aggression.”
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