US Stocks Rise as Oil Prices Drop, Inflation Concerns Ease
Stocks in the US are starting the day on an upward trend, led by a drop in oil prices.
The price of WTI crude fell over -2% yesterday as investors weighed a weaker demand outlook and continued to monitor developments in the Middle East. OPEC and the International Energy Agency both cut their 2026 crude demand forecasts.
Inflation concerns eased with the lower oil prices, causing Treasuries to rise across the curve. The 10-year T-note yield fell three basis points to 4.67%.
Yesterday's trading session saw Wall Street's main equity benchmarks close mostly higher. Super Micro Computer (SMCI) jumped over +19%, and Nebius Group N.V. (NBIS) popped more than +34% after reporting a 514% surge in Q2 sales for its AI cloud business.
Today, investors will be watching the U.S. Producer Price Index, which is expected to rise +0.2% m/m and +4.9% y/y. The U.S. Core PPI will also be in focus, with economists expecting a core measure of wholesale inflation to rise +0.3% m/m and +4.2% y/y.