Investors will focus on a mix of macro data and corporate earnings this week. The U.S. consumer price index (CPI) for August is projected to rise 3.4% year‑on‑year, matching July, with a month‑on‑month increase of 0.4%, up from 0.1% in July. Core CPI is expected at 2.4% YoY and 0.2% MoM, unchanged from the prior month. The figures follow a strong jobs report that underscored labor‑market resilience.
The European Central Bank meets on Thursday, and market pricing reflects a full expectation of a 25‑basis‑point rate increase, described by traders as an “insurance hike.” The move aims to reinforce credibility amid an energy shock that has pushed European gas prices to their highest level since 2023.
Geopolitical tension in the Middle East adds further uncertainty. The conflict that began with a joint U.S.–Israeli strike on Iran in late February has led to a de‑facto closure of the Strait of Hormuz, creating a six‑month stalemate. Analysts note that while the United States maintains a naval blockade and tighter sanctions, Tehran’s resistance could prolong the standoff.
Oracle is slated to report after the Thursday close. The software giant announced in June a plan to raise roughly $40 billion through debt and equity in the coming year, double the $20 billion previously targeted. For fiscal 2027, Oracle projects capital expenditures of $95 billion, well above analysts’ consensus of $67.66 billion, according to LSEG data. The company highlighted partnerships with Meta Platforms and OpenAI.
Adobe will also release results after U.S. markets close on Thursday. The firm disclosed that AI‑focused annual recurring revenue exceeded $500 million in the second quarter and lifted its full‑year revenue and profit outlook. The company noted recent departures of CFO Dan Durn and CEO Shanthanu Narayen. Competitors such as Figma and Canva were referenced in the commentary.
