Bonds & Stocks
US stocks are set to notch fresh highs after Oracle Corp. surged on a blowout outlook and traders bet that a pair of inflation reports won’t derail the Federal Reserve from cutting interest rates. Futures for the S&P 500 rose 0.2% after extending this year’s record-breaking rally in the previous session. Oracle jumped 30% in early trading after stunning Wall Street with an aggressive forecast and fueling optimism that the AI infrastructure roll-out is speeding up.
Economy
US wholesale inflation unexpectedly declined in August for the first time in four months, adding to the case for the Federal Reserve to cut interest rates. Goods prices excluding food and energy rose 0.3%. Services costs fell 0.2%. Within services, margins at wholesalers and retailers fell 1.7%, the biggest drop in over a year. Margins have been volatile from month to month so far this year, underscoring uncertainty around the impact of trade policy on prices and demand.
World
Poland sought a consultation of NATO powers after shooting down drones that crossed into its territory, calling the incursion an “act of aggression.” Prime Minister Donald Tusk said the airspace violation in the early hours of Wednesday amounted to an intentional provocation from Moscow, forcing the NATO and European Union member state to close its airspace and order citizens in the eastern part of the country to stay indoors.