Futures Slide as Oil Prices and Bond Yields Surge Ahead of Key Inflation Data

Stock market futures are down this morning as investors await key inflation data and corporate earnings reports. The Producer Price Index, which measures wholesale price inflation, is expected to show an acceleration in prices, rising 5.3% in the 12 months ending in August. This comes after a surge in oil prices and bond yields, which have both risen due to concerns about the Iran war and inflation.

The yield on the 10-year Treasury was at 4.88%, its highest level in nearly three years, while WTI crude oil futures were up over 3% at nearly $99 per barrel. Oracle and Adobe are set to report earnings this afternoon, with Oracle expected to show a 28% year-over-year increase in revenue.

American Eagle shares are tumbling after the clothing retailer posted disappointing second-quarter results, including comparable sales growth that came in below expectations. Despite this, American Eagle lifted its full-year operating profit forecast.