It's a classic "good news is good news" kind of morning on Wall Street, at least for now. U.S. stock futures are pointing to a mixed but mostly positive open on Thursday, with the Dow Jones and S&P 500 set to rise while the Nasdaq 100 takes a small breather. This comes after a Wednesday session that saw the major indices close on a mixed note, with the S&P 500 and Nasdaq managing gains while the Dow slipped.
The catalyst for the optimism? July's Consumer Price Index (CPI) came in at 3.4% year-over-year, down from June's 3.5% increase and right in line with what economists had penciled in. That's the kind of number that gives investors a little more confidence that the Federal Reserve's inflation fight is making progress, even if it's slow going. But the market isn't popping champagne just yet—there's more data on the way.
Later this morning, before the opening bell, we'll get July's Producer Price Index (PPI) and the core PPI reading that strips out food and energy. That's the wholesale side of the inflation story, and it'll give us a better sense of whether the cooling trend is broad-based or just a fluke of consumer prices.
But it's not all about inflation data. Geopolitical tensions are simmering in the Middle East, with the U.S. and Iran reportedly making no progress on reviving their interim peace agreement. The Strait of Hormuz remains heavily disrupted amid fresh attacks on commercial shipping, according to Reuters. President Donald Trump took to social media to weigh in, declaring that "Iran is all talk and no action, the Bully of the Middle East No Longer." That's the kind of rhetoric that keeps traders on edge, even if it doesn't immediately move the needle on oil prices.
Speaking of which, crude oil futures are trading lower this morning, down 1.81% to around $81.76 per barrel. Gold is also slipping, down 0.78% to $4,374.23 per ounce, while the U.S. dollar index is basically flat at 99.9930.
On the bond side, the 10-year Treasury yield is at 4.67%, and the two-year is at 4.17%. The CME Group's FedWatch tool shows markets pricing in a 36.1% chance that the Federal Reserve hikes interest rates at its September meeting. So while inflation is cooling, the market still sees a meaningful possibility of another rate increase.
Let's get to the premarket action. Here's how the major index futures are shaping up:
The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100, respectively, are mixed in premarket. SPY is up 0.16% at $773.76, while QQQ is down 0.02% to $723.52.
Stocks In Focus
Cisco Systems
Cisco Systems Inc. (CSCO) shares are tumbling 5.63% in premarket trading, and it's a bit of a head-scratcher at first glance. The networking giant reported better-than-expected financial results and guidance for the fourth quarter of fiscal 2026. So why the sell-off? The company also announced a global baseline price increase of 3.4% to 4.0% across its core hardware and technical services portfolio. That's a bold move, and investors might be worried about the impact on demand. It's a classic "good news, but..." situation.
Market data indicates that CSCO maintains a strong price trend in the short, long, and medium terms, with a good quality score.
Cerebras Systems
Cerebras Systems Inc. (CBRS) is getting hammered, down 17.39% after reporting a second-quarter GAAP loss of $2.98 per share on revenue of $180.11 million, which missed the $194.2 million analyst estimate. Ouch. But here's the twist: core revenue more than doubled to $210 million, and its cloud business nearly quadrupled year-over-year. So the underlying business is growing like crazy, but the headline numbers are disappointing. The market is voting with its feet today, but long-term investors might see this as a buying opportunity if they believe in the AI chip story.
Market data indicates that CBRS maintains a strong price trend in the short, long, and medium terms.
Infleqtion
Infleqtion Inc. (INFQ) is down 3.11% after missing earnings per share estimates, but the revenue picture is brighter. The company reported second-quarter revenue of $12.63 million, beating analyst estimates of $10.64 million. So it's a mixed bag, and the market is focusing on the bottom line today.
Market data indicates that INFQ maintains a weak price trend in the short, long, and medium terms.
Netflix
Netflix Inc. (NFLX) is up 1.83% after Bill Ackman's Pershing Square disclosed a new position in the streaming giant, with 3.15 million shares. This is a notable move, because Ackman famously exited Netflix four years ago with a $400 million loss. Now he's back, and the market seems to be taking it as a vote of confidence. It's a redemption arc of sorts, and investors are intrigued.
Market data indicates that NFLX maintains a weak price trend in the long, short, and medium terms, with a good growth score.
Applied Materials
Applied Materials Inc. (AMAT) is up 0.63% ahead of its earnings report, which is due out after the closing bell. Analysts are expecting quarterly earnings of $3.39 per share on revenue of $9.00 billion. The semiconductor equipment maker is a bellwether for the chip industry, so this report could have ripple effects across the sector.
Market data indicates that AMAT maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a poor value score.
Cues From Last Session
Wednesday was a mixed day for the markets. Real estate, information technology, and utilities stocks rose, along with other sectors, but communication services, consumer discretionary, and materials lagged. Here's how the major indices closed:
Insights From Analysts
BlackRock is out with its latest take on the market, and the message is cautiously optimistic. The asset management giant maintains an "overweight" stance on U.S. equities, even as it prepares for structural shifts across the broader economy. The reasoning? "Strong corporate earnings, fueled by the AI buildout and a favorable macro backdrop, are outpacing higher interest rate expectations."
Analysts project S&P 500 corporate earnings to grow by 11.6% annually over the next five years, though that outlook is conditional on artificial intelligence actually delivering on its promise of boosting productivity and profit margins. It's a big if, but the market is betting on it.
BlackRock also sees an economy shaped by "a structurally higher cost of capital" and persistent inflation risks. That means long-term bond yields are likely to stay under upward pressure, because "governments, AI hyperscalers and companies across the economy are competing ever more intensely for capital." In other words, everyone wants money, and that's going to keep borrowing costs elevated.
On valuations, BlackRock notes, "we see valuations falling as earnings growth outpaces share price gains, allowing multiples to decline over time." That's a fancy way of saying stocks might not get cheaper in absolute terms, but they'll look more reasonable relative to earnings.
To navigate this regime, BlackRock prefers targeted equity exposures tied to AI infrastructure bottlenecks—such as chips, power, and data centers—as well as sectors like healthcare and technology.
Upcoming Economic Data
Here's what investors will be watching on Thursday:
- Cleveland Fed President Beth Hammack speaks at 8:15 a.m. ET.
- Initial jobless claims for the week ending Aug. 8, July's PPI, and July's ex-food & energy PPI data are all released at 8:30 a.m. ET.
- Richmond Fed President Thomas Barkin speaks at 8:40 a.m. ET.
These data points will give us a clearer picture of the economy's health and could influence the Fed's next move.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures are trading lower in the early New York session, down 1.81% to around $81.76 per barrel. Gold Spot US Dollar fell 0.78% to hover around $4,374.23 per ounce. The U.S. Dollar Index spot is 0.02% lower at 99.9930.
Meanwhile, Bitcoin (BTC) is trading 0.01% higher at $63,739.58 per coin over the last 24 hours. Crypto is basically flat, which is a bit of a relief after some recent volatility.
Asian markets were mostly lower on Thursday, with the exception of Japan's Nikkei 225 and South Korea's Kospi. Australia's ASX 200, Hong Kong's Hang Seng, India's Nifty 50, and China's CSI 300 all fell. European markets are mixed in early trading.
So, it's a day of mixed signals: cooling inflation, but geopolitical tensions; strong earnings, but price hikes; and a Fed that's still keeping everyone guessing. Buckle up.
