Stocks Rise on Weaker Oil and Lower Inflation Expectations

The S&P 500 and Dow are poised for a higher open on Thursday as oil prices decline, boosting risk appetite. Brent crude futures dropped about 2.2% after six consecutive sessions of gains, as investors assess weaker global demand this year and higher U.S. crude stocks.

Producer price inflation came in at 4.7%, below expectations of a 4.9% gain in July. This follows benign consumer inflation data that strengthened the expectation of the Fed holding interest rates steady at its next meeting.

Brock Weimer, analyst and investment strategy for Edward Jones, said, 'Taking the two reports together, we can probably glean a very, perhaps modest, dovish print from the inflation data this month. That being said, I don’t think it’s really enough to sway the Fed one way or another just from this month’s data.'

The tech-heavy Nasdaq has rebounded since falling over 10% from its all-time high two weeks ago, as strong earnings from AI hyperscalers and other technology companies revived enthusiasm for the AI trade.