Dow futures jump 300 points ahead of August CPI

U.S. stock futures climbed on Friday as investors positioned ahead of the August Consumer Price Index. Dow futures gained roughly 300 points, while S&P 500 and Nasdaq 100 futures rose about 0.5% and 0.6%, respectively, after four straight losing sessions.

The August CPI report is scheduled for 8:30 a.m. ET. Forecasts cluster around 3.3%–3.4% for headline year-over-year inflation and about 2.4% for core inflation. Markets were assigning roughly a two-thirds probability to a 25-basis-point rate increase at next week’s Federal Reserve meeting. Traders expect a hotter-than-expected headline print, especially if driven by energy, to raise the odds of an immediate hike, while a softer core reading would likely ease pressure on stocks and Treasuries.

Interest rates remained in focus. The 10-year Treasury yield traded around 4.95% after touching 4.979% overnight, keeping the 5% threshold in view. The 30-year Treasury yield has risen to levels not seen since 2007. Analysts note that higher risk-free yields reduce the present value of future earnings for growth stocks and increase borrowing costs for mortgages, auto loans and corporate debt.

Energy prices also shaped the inflation outlook. Brent crude traded near $106 a barrel after briefly approaching $110, while West Texas Intermediate slipped toward $101. Brent was on course for a double-digit weekly gain. U.S. diesel reached a record $6.06 a gallon, adding to transportation and production costs. ING analysts wrote that oil markets are recalibrating expectations about how long the Middle East conflict could last and how severe potential supply disruptions may be.

Corporate earnings provided a mixed backdrop. Oracle shares rose about 7% in premarket trading after quarterly revenue of $19.3 billion, a roughly 30% increase, and a more than doubling of cloud-infrastructure revenue. Oracle reported more than $30 billion in AI cloud contracts and raised remaining performance obligations to $664 billion. JPMorgan wrote that the results eased concerns about data center delays and whether signed AI agreements would convert into revenue, while noting investors will watch Oracle’s free cash flow given high capital spending.

Adobe shares fell about 2%–3% in premarket trading despite reporting record quarterly revenue of $6.76 billion and adjusted earnings of $6.13 a share. The company said AI-first annual recurring revenue rose more than 150% year over year and is shifting toward a freemium distribution model. Citi maintained a Neutral rating and noted that investors seek clearer strategic direction as Adobe faces AI competition and a leadership transition.

Market participants said the CPI print will be closely watched for its immediate effects on yields and equity valuations ahead of the Federal Reserve’s decision next week.