Stock Market Update

Equity futures point to a higher opening this morning as stocks look to bounce back from their worst session of the week. Yesterday's action was defined by another intraday sell-off in tech names without broader market support to offset the losses.

Tech and particularly semiconductor stocks are moving higher in the premarket, though the recent shakiness across the group makes their ability to maintain the early strength a barometer of sentiment.

Elsewhere on the tech front, Oracle (ORCL 184.90, -16.36, -8.1%) is sharply lower after reporting earnings last night, beating expectations but prompting return on investment concerns after announcing an additional $20 billion in equity financing.

Stocks are supported by a modest pullback in oil prices, which comes despite a flare-up in hostilities between the U.S. and Iran. The Wall Street Journal reports that the U.S. attacked Iranian defenses and radar sites near the Strait of Hormuz, while Iran launched strikes against Kuwait, Bahrain, and Jordan.

On the data front, the market has another inflation reading due at 8:30 a.m. ET in the form of the PPI (Briefing.com consensus 0.7%) and Core PPI (Briefing.com consensus 0.4%) releases. Yesterday's release of the Consumer Price Index was largely in-line and did not alter the market's expectations of the Fed's policy path.

In corporate news:

• OpenAI is mulling large price reductions, according to The Wall Street Journal.
• Intel (INTC 112.20, +5.16, +4.8%) was upgraded to Buy from Underperform at Bank of America Securities, with a target price of $135.
• Oracle (ORCL 184.90, -16.36, -8.1%) beat EPS expectations by $0.15, reported revenues in-line, guided Q1 EPS above consensus with revenues in-line, and guided FY27 EPS above consensus while reaffirming FY27 revenue guidance.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mixed showing on Thursday with most markets ending the session within 0.5% of their flat lines. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: -0.2%, India's Sensex: -0.2%, South Korea's Kospi: +0.4%, Australia's ASX All Ordinaries: -0.2%.

In news:

• There was ongoing focus on the Middle East after the U.S. bombed multiple targets in Iran, though oil has remained below $90 per barrel.
• Bank of Japan Governor Ueda will miss next week's policy meeting due to hospitalization, but the market remains confident that a rate hike will be announced.
• South Korea's exports were up 86% yr/yr through the first ten days of June with chip exports jumping 206%.

In economic data:

• Japan's Q2 BSI Large Manufacturing Conditions -1.8 (expected 4.2; last 3.8)
• South Korea's May Unemployment Rate 2.8% (last 2.8%)
• Australia's June MI Inflation Expectations 5.5% (last 5.6%)

Major European indices trade in the green ahead of the European Central Bank's rate decision at 8:15 ET, which is expected to be a hike. STOXX Europe 600: +0.9%, Germany's DAX: +0.2%, U.K.'s FTSE 100: +1.0%, France's CAC 40: +1.0%, Italy's FTSE MIB: +1.4%, Spain's IBEX 35: +1.5%.

In news:

• The market will be curious to hear whether ECB President Lagarde hints at additional increases in the coming months or signals that a one-time adjustment is seen as sufficient.
• Germany's farm cooperative increased its wheat harvest forecast for the year due to good weather.

There is no economic data today.