U.S. stock futures edged higher on Thursday after Wall Street's major indices fell on Wednesday, with the S&P 500 declining 0.6% to close at 7,592.12 points, the NASDAQ Composite dropping 0.7% to settle at 26,081.73 points, and the Dow Jones Industrial Average losing 0.6% to conclude at 52,064.46 points. Apple (AAPL) closed 3.6% higher, while Cooper slumped nearly 15%, marking the top percentage loser on the S&P 500.
The Bureau of Labor Statistics reported August headline PPI increased 0.4% month-over-month, in line with consensus estimates, while the year-over-year rate rose to 5.4%, also matching expectations. Core PPI inched up 0.2% month-over-month and 4.6% year-over-year, consistent with forecasts. The final demand goods index rose 1.1% month-over-month, with over three-fourths driven by final demand energy prices.
The 10-year Treasury yield surged 12.4 basis points to 4.961%, its highest level since October 2023, while the 2-year Treasury yield added 14 basis points to 4.567%, its highest since July 2024. The U.S. Treasury Department announced it would repurchase up to $6 billion in 10-year to 20-year maturities, triple its previous target. The Treasury received $10.489 billion of offers and accepted $5.187 billion.
WTI crude futures topped $100 for the first time since May 21, surpassing $100 for the first time in over three-and-a-half months. Brent crude futures topped $100 on the previous day for the first time since May 26.
The probability of a quarter-point rate hike by the FOMC on September 16 stood at 73%, up from about 64% before the PPI data. Apple unveiled its first foldable smartphone, the iPhone Duo, priced at $1,999, alongside the iPhone 18 Pro and Pro Max. Oppenheimer forecast the iPhone Duo to become the most successful foldable phone on the market, with supply limited to 8 million to 10 million units this year. Cooper completed a strategic review deciding to retain CooperSurgical after missing quarterly top-line expectations.
The U.S. Central Command destroyed five Iranian crude oil carriers in response to a U.S. Navy warship being targeted by the Islamic Revolutionary Guard Corps. Iranian state media reported hits on two American vessels, eight oil tankers, ten U.S.-backed ships, and one U.S. military base in Jordan.
