In a crucial start to the trading day, investors are closely monitoring the release of the August consumer price index (CPI), set to come out at 8:30 a.m. ET. This key inflation metric follows yesterday’s favorable producer price index (PPI) report, which unexpectedly showed a decline in wholesaler inflation for the previous month.
Economists are forecasting a month-over-month CPI increase of 0.3% and a year-over-year rise of 2.9%. When volatile food and energy prices are excluded, the expected core CPI increase is also 0.3% for the month and 3.1% for the year. Investors are keenly hoping that today’s CPI data will not diminish their expectations for an interest rate cut, scheduled for discussion at next week’s Federal Reserve meeting. Current market futures indicate a complete confidence level in a reduced borrowing cost, according to the CMEGroup’s FedWatch tool. Additionally, the Labor Department’s internal oversight office has launched an investigation into the data collection practices of the Bureau of Labor Statistics related to employment and inflation.
In a shocking turn of events, conservative political activist Charlie Kirk was assassinated during an event at Utah Valley University. At 31 years old, Kirk was a prominent supporter of former President Donald Trump and a co-founder of Turning Point USA, an organization aimed at engaging younger conservatives. Authorities are currently conducting a manhunt for the suspect, having released two individuals who were questioned but found to have no connection to the crime.
On a brighter note for investors, shares of Oracle skyrocketed 36% in yesterday’s session, following groundbreaking cloud growth estimates that greatly exceeded Wall Street’s projections. The surge propelled Oracle’s Chairman, Larry Ellison, to add over $100 billion to his net worth, bringing him closer to surpassing Elon Musk as the richest person in the world. Wednesday marked Oracle’s best trading day since 1992, with other AI-related stocks, including Nvidia and Broadcom, also witnessing gains amid optimism surrounding the tech sector’s future.
Meanwhile, Amazon has officially entered the U.S. robotaxi market, as its subsidiary, Zoox, launched its first public service in Las Vegas. Initially offering free rides from select locations on the famous strip, Zoox plans to expand its operations in the city, moving to a paid model upon obtaining regulatory approval. Amazon is entering a competitive landscape dominated by companies like Alphabet’s Waymo and Tesla, which began testing its own robotaxi service in Austin earlier this year.
Lastly, Chipotle has announced plans for international expansion through a joint venture with the Korean operator SPC Group. The fast-casual dining chain is set to open its first locations in South Korea and Singapore next year, as it seeks to broaden its presence beyond the United States, where currently 98% of its restaurants are located.
