Futures Plummet Ahead of Inflation Data

The pre-market futures are trading lower ahead of inflation data releases on Thursday and Friday. The Strait of Hormuz conflict is continuing to put pressure on global oil supplies, with spot prices up 2.8% to $95 per barrel for WTI and $100 per barrel for Brent.

Bond yields are also rising, with the 10-year bond yield at +4.81% and the 2-year bond yield at +4.41%. The Producer Price Index (PPI) is expected to increase by +5.3% in August, a significant jump from July's +4.7%.

The Core PPI dropped half a percentage point last month to +4.2%, but these numbers are still well above the Federal Reserve's optimal level of +2%. Investors will be looking for any signs that inflation is beginning to slow down.