S&P 500: Futures Mixed Pre-Market as Traders Brace for PPI Inflation Data

Will the Federal Reserve Reinforce Rate-Cut Hopes?

Cooling consumer inflation sparked optimism for a potential policy pivot at the Fed’s September meeting. Traders now look to Thursday’s PPI and jobless claims data for confirmation.

Economists expect July producer prices to rise 0.2%, a modest pickup after a flat June. Sam Stovall of CFRA noted that despite expectations for M/M and Y/Y PPI gains, investors remain focused on easing speculation rather than headline prints.

Treasury yields were largely steady ahead of the data, with the 10-year yield holding around recent lows. If wholesale prices come in cooler than forecast, it could solidify bets on a rate cut and provide a fresh catalyst for index breakout attempts.

Earnings Disappointments Pressure Cisco and Deere

Corporate earnings provided headwinds Thursday. Cisco shares slipped over 1% premarket after narrowly beating fourth-quarter estimates with adjusted EPS of $0.99 versus the expected $0.98, and revenue of $14.67 billion just above consensus. The company’s guidance did little to excite bulls, causing a 3% pullback in after-hours trade.

Deere fared worse, dropping over 7% after issuing full-year net income guidance of $4.75–$5.25 billion, with the top end falling short of its prior $5.5 billion projection. This weighed on industrials, a key sector for Dow futures.

Ibotta plunged 21% after missing Q2 estimates, posting $0.08 EPS versus the expected $0.19, and lowering Q3 revenue guidance. Semiconductor name Coherent also fell sharply, despite topping earnings and revenue expectations, as news broke it will divest its aerospace and defense segment for $400 million. Shares slid over 16% on the announcement.