SL Topnews – In Tuesday’s early trading hours, US stock futures held steady as investors prepare for critical US inflation data due later this week. With Apple (NASDAQ: AAPL) debuting its AI-enhanced iPhone 16 and Oracle (NYSE: ORCL) reporting earnings that outperformed estimates, several factors are influencing today’s market sentiment.
1. US Futures Struggle for Direction
US stock futures showed little movement on Tuesday, with traders largely holding back as they await the release of key inflation data. By 03:42 ET (07:42 GMT), Dow and S&P 500 futures remained virtually unchanged, while Nasdaq 100 futures dropped by 0.2%, pointing to a cautious start to the day.
Investors are grappling with mixed signals from last week’s weaker-than-expected jobs report and sluggish manufacturing data. These figures have reignited speculation about the Federal Reserve’s next move. With a rate cut expected at the central bank’s upcoming meeting on Sept. 17-18, the magnitude of the cut—either 25 or 50 basis points—remains uncertain. Wednesday’s consumer price index (CPI) report will be crucial in shaping market expectations on inflation and interest rates.
In stock-specific news, Boeing (NYSE: BA) shares rose following a tentative labor agreement with its largest union, while both Palantir (NYSE: PLTR) and Dell Technologies (NYSE: DELL) made headlines with their upcoming inclusion in the S&P 500 index.
2. Apple’s AI-Driven iPhone 16 Fails to Excite Markets
Apple unveiled its much-anticipated iPhone 16 on Monday, showcasing advanced artificial intelligence (AI) capabilities. Despite the introduction of smart camera features and an upgraded Siri, Apple’s stock showed little movement in after-hours trading. Analysts pointed out that the iPhone 16’s AI-driven features were largely expected, with no major surprises revealed.
This latest iPhone iteration is seen as a key product in Apple’s broader AI strategy, branded as “Apple Intelligence.” However, the gradual rollout of new AI features may temper consumer excitement, especially given the fierce competition from Samsung (KS: 005930) and Huawei. Pre-orders for the iPhone 16 will start this Friday, with the official release slated for Sept. 20. With slowing iPhone sales in recent quarters, Apple is counting on this new model to turn things around.
3. Oracle Outperforms with Strong Cloud Business
Oracle reported impressive fiscal first-quarter results late Monday, pushing its stock higher in after-hours trading. The cloud computing giant delivered earnings per share (EPS) of $1.39 on revenue of $13.3 billion, surpassing Wall Street expectations of $1.33 EPS and $13.23 billion in revenue.
Driving this success was the strong demand for Oracle’s cloud services, particularly its Oracle Autonomous Database and Exadata Database, which will now be available on Amazon Web Services (AWS) thanks to a new partnership with the cloud leader.
Oracle’s remaining performance obligation (RPO), which tracks future revenue commitments, climbed 53% year-on-year to $99 billion, a clear sign of continued growth. Looking ahead, Oracle projected second-quarter revenue growth between 8% and 10%, outpacing analysts’ expectations.
4. Chinese Exports Defy Expectations in August
China’s export numbers beat forecasts in August, growing 8.7% year-on-year and marking the fastest pace since March 2023. This stronger-than-expected export growth comes as companies race to fulfill orders before new trade tariffs take effect.
However, domestic demand remains a concern, as indicated by weaker-than-expected import growth of just 0.5%, missing the 2% forecast. Analysts suggest that despite strong export performance, China’s economy may face longer-term challenges, particularly as more trading partners move to erect tariffs and barriers against Chinese goods.
Economists expect export activity to remain strong in the near term, with firms attempting to secure orders before foreign trade policies become more restrictive.
5. Oil Prices Slip Amid Mixed Global Demand
Oil prices saw a slight dip on Tuesday as concerns over weak demand from China outweighed fears of supply disruptions from Tropical Storm Francine, which has been affecting US oil production in the Gulf of Mexico.
Brent crude futures dropped 0.4% to $71.53 a barrel, while West Texas Intermediate (WTI) crude futures slipped to $67.61 per barrel. Despite storm-related production halts by major oil firms like Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), tepid demand from China—the world’s largest oil importer—continues to weigh on the market.
Traders remain cautious as they assess the broader impact of China’s slowing economy on global oil consumption.