Market Snapshot

• Stock index futures for the Dow, S&P 500, and Nasdaq advanced Thursday morning ahead of the July Producer Price Index report.
• Cisco (CSCO) and Cerebras (CBRS) delivered quarterly results that exceeded analyst forecasts, yet both faced selling pressure after hours.
• Applied Materials ($AMAT) is scheduled to release earnings Thursday evening following a 190% surge over the past twelve months.
• Consumer inflation data showed prices rose 3.4% in July, strengthening expectations that the Federal Reserve will hold rates steady in September.
• Crude prices declined as the Trump administration shifted toward economic strategies in its Middle East policy.

Futures Build on Wednesday's Rally

Dow Jones Industrial Average futures gained 130 points, a 0.3% increase, on Thursday morning. S&P 500 futures advanced 0.2%, while Nasdaq 100 futures posted a modest 0.1% rise, positioning the S&P 500 near a fresh all-time closing high. A close at or near record territory would mark a significant milestone for a market that has navigated persistent inflation, elevated interest rates, and geopolitical uncertainty throughout the year.

Thursday's pre-market strength builds on Wednesday's positive momentum, when all three primary benchmarks rallied on the back of strong technology sector earnings.

Inflation Data in Focus

The primary economic release Thursday arrives at 8:30 a.m. Eastern with the July Producer Price Index. Market analysts anticipate wholesale price pressures will register 4.9%, down from June's 5.5% reading. The PPI report carries particular weight because wholesale input costs tend to feed through to consumer prices in subsequent months, making it a closely watched leading indicator for the inflation trajectory the Federal Reserve is attempting to manage.

The PPI report follows Wednesday's Consumer Price Index, which showed inflation decelerated to 3.4% in July. The softer inflation figure led several market participants to scale back expectations for a Federal Reserve rate increase in September, although most Fed observers still project at least one additional hike this year.

BREAKING: July CPI inflation falls to 3.4%, in-line with expectations of 3.4%

Core CPI inflation falls to 2.5%, also in-line with expectations of 2.5%.

Month-over-month CPI inflation rose +0.1%, up from -0.4% in June.

US stock market futures are rising on the news.

— The Kobeissi Letter (@KobeissiLetter) August 12, 2026

Deutsche Bank's Jim Reid identified specific sectors — including health care services, airline tickets, and investment management fees — as critical components to monitor. These categories directly influence the Personal Consumption Expenditures price index, which serves as the Federal Reserve's primary inflation gauge.

"Given the uncertain pricing for the upcoming Fed decision, these data releases will likely attract significant market attention," Reid noted.

Strong Earnings Fail to Prevent After-Hours Declines

Cisco (CSCO) climbed 2.86% and Cerebras (CBRS) jumped 11.63% during Thursday's regular session. Both technology companies delivered quarterly results that surpassed Wall Street expectations and underscored robust demand for artificial intelligence infrastructure.

Despite the positive earnings and optimistic forward guidance, investors sold both equities in after-hours trading. The reaction mirrors a recurring pattern this reporting season: companies beating estimates yet facing immediate share price pressure. Such responses often reflect expectations that had already been priced in during the run-up to results, particularly in high-performing sectors where valuations have expanded sharply.

Applied Materials ($AMAT), which gained 4.29% on Thursday, reports quarterly results after the market close. The semiconductor equipment manufacturer's extraordinary 190% annual return has set a high bar for performance expectations. As a key supplier of the machinery used to fabricate advanced chips, Applied Materials sits at the center of the global semiconductor supply chain that has seen surging investment driven by AI, data center expansion, and government-backed manufacturing incentives. Its quarterly report ranks among the most closely watched corporate updates of the week.

Consumer Sector, Labor Market Indicators Draw Attention

Weekly initial unemployment claims data is released Thursday morning. Following last week's disappointing employment report, market participants are monitoring labor market trends for signs of further weakness.

Tapestry (TPR), Dillard's (DDS), and Birkenstock Holding ($BIRK) all publish quarterly earnings Thursday. These retail sector results could shed light on how consumer-facing businesses are navigating tariff adjustments amid evolving trade policies.

Crude oil prices retreated Thursday as President Trump transitioned from potential military engagement toward economic sanctions in the Middle East. The administration also disputed private sector data indicating reduced shipping volumes through the Strait of Hormuz, asserting that the United States maintains "complete authority" over the critical maritime passage. The Strait of Hormuz is one of the world's most important energy chokepoints, with roughly one-fifth of global oil consumption routinely passing through it on a daily basis.