The August Producer Price Index (PPI) report released by the U.S. government showed headline growth of 0.4%, matching consensus estimates. Core PPI, which excludes food and energy, rose 0.2%, coming in just under the average estimate of 0.3%. Despite the data largely meeting expectations, major stock indexes fell early in the session.
Market pressure was driven primarily by commodity prices and bond yields. U.S. crude oil surpassed $100 a barrel, while the yield on the 10-year Treasury note struck 4.90%. The source notes that there is "no end in sight to the war," contributing to the sustained high yields and oil volatility.
In the corporate sector, Oracle is scheduled to report earnings later today. Adobe shares have fallen sharply following an announcement of a CEO change, though they remain up from June lows due to broader optimism in software stocks. Strong recent results from Salesforce (CRM) and Snowflake (SNOW), along with Adobe’s previous quarter topping estimates, have supported this sentiment. Today’s call may provide clarity on Adobe's leadership decision regarding the internal hire.
Freeport McMoRan (FCX) plunged 8% early as copper prices dropped more than 4%. Copper had recently hit record highs amid supply concerns but fell after China’s August imports of the metal reached six-year lows for the month. Additionally, the Trump administration announced it would delay tariffs, impacting the metals market.
