Global markets rally as oil prices retreat ahead of US inflation data
September S&P 500 and Nasdaq 100 futures gain as OPEC and IEA cut demand forecasts; corporate earnings drive volatility in tech sector
Global equity markets advanced on Thursday, driven by a decline in oil prices and reassuring US consumer inflation data, as investors positioned themselves ahead of the release of crucial producer price index figures. September S&P 500 E-Mini futures rose 0.19 per cent, while September Nasdaq 100 E-Mini futures climbed 0.10 per cent prior to the US market open.
The price of West Texas Intermediate crude fell more than 2 per cent as market participants weighed weaker demand outlooks. Both OPEC and the International Energy Agency reduced their 2026 crude demand forecasts, adding pressure on energy prices despite ongoing tensions in the Middle East. The US and Iran remained at an impasse regarding plans to reopen the Strait of Hormuz or initiate peace talks.
US Treasury yields declined across the curve, with the benchmark 10-year note yield dropping three basis points to 4.67 per cent. This movement followed a US Bureau of Labour Statistics report showing that headline consumer inflation eased to 3.4 per cent in July from 3.5 per cent in June, matching expectations. Core CPI also rose in line with forecasts, holding at 2.5 per cent year-on-year.
In Europe, the Euro Stoxx 50 Index rose 0.55 per cent, supported by lower energy costs and positive corporate news. Bank stocks led the gains, while travel and leisure shares advanced. Conversely, mining stocks slumped as metal prices retreated. In Asia, markets were mixed; Japan’s Nikkei 225 gained 1.16 per cent on strength in artificial intelligence stocks, while China’s Shanghai Composite fell 0.50 per cent.
Corporate earnings delivered significant volatility, with Super Micro Computer, Nebius Group, and CoreWeave surging on strong results. Super Micro Computer jumped over 19 per cent after its revenue forecast exceeded estimates, while Nebius Group rose more than 34 per cent following a surge in AI cloud sales. On the bearish side, Cisco Systems slumped more than 5 per cent and Cerebras Systems tumbled over 18 per cent in pre-market trading after guidance disappointed investors.
