Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Aug. 24, 2026.
Brendan McDermid | Reuters
Stock futures moved higher early Friday as oil prices declined and traders looked ahead to August’s consumer price index report.
Futures linked to the Dow Jones Industrial Average were up 299 points, or 0.6%. S&P 500 futures climbed 0.6% along with Nasdaq-100 futures.
Oracle shares popped more than 7% in the premarket on the back of better-than-expected results for the fiscal first quarter.
The gains came as crude prices eased, giving back some of the sharp gains seen this week due to escalating tensions in the Middle East. West Texas Intermediate futures dropped 3.3% to $99.08 per barrel. Brent futures slid 3.6% to $103.76 per barrel.
Both contracts remained on pace for weekly advances of around 8%, putting pressure on U.S. equities. Week to date, the Dow is on pace for a 2.5% decline, while the S&P 500 is heading for a 1.6% loss. The Nasdaq is also on track for a 1.6% slide.
Rates have also risen sharply this week, fueled by worries that higher energy prices would drive upward pressure on inflation. The 10-year Treasury note yield topped 4.95% this week, reaching levels not seen since October 2023.
All eyes are on the upcoming consumer price index reading for August, due Friday. Economists polled by Dow Jones anticipate a 0.4% increase on a monthly basis and an annual rate of 3.4%. This pivotal report that will factor into the Federal Reserve’s Sept. 16 decision on interest rates. Fed funds futures trading suggests a roughly 71% likelihood of a rate hike, according to the CME Group’s FedWatch tool.
The outcome of the CPI report will be key as to whether the Fed holds steady or raises rates next week, said Christopher Hodge, chief economist of the U.S. at Natixis CIB Americas.
“A reading in line with consensus would represent the fourth consecutive month of encouraging inflation readings and ease pressure for a hike by the Fed in September,” he said. “If inflation comes in hotter than consensus, we expect a hike at next week’s meeting.”