Global stocks mixed ahead of US CPI report

US equities hit fresh record highs on Wednesday, supported by softer inflation data and a strong outlook from Oracle. The S&P 500 rose 0.30% and the Nasdaq 100 inched higher, with both closing at all-time peaks, while the Dow fell 220 points as Apple weighed on the index. August’s Producer Price Index (PPI) slipped 0.10%, compared with forecasts for a 0.30% rise—its first monthly decline in four months—driven by weaker service costs. The softer reading, together with a drop in the annual PPI to 2.60% against expectations of 3.30%, bolstered hopes that Thursday’s CPI release will confirm a disinflationary trend and gave the Federal Reserve more scope to act amid signs of a cooling labour market.

Technology shares led the advance, with Oracle surging 35.90% on the back of soaring cloud bookings linked to AI demand, which in turn lifted Nvidia up by 3.80%, while AMD rose by 2.40%. Apple, however, fell 3.20% after a lacklustre reception to its iPhone 17 launch.

Meanwhile, in Europe, the FTSE 100 retreated by 0.14% on Wednesday after a two-day rally lifted it to two-week highs, tracking broader weakness across European markets, which closed slightly weaker as tech, consumer staples and mining shares weighed. The STOXX 50 eased 0.20% to 5 378, while the STOXX 600 dipped just below the flatline at 552. Traders remain focused on the Europe Central Bank’s policy meeting tomorrow, with rates expected to remain unchanged but fresh guidance closely watched. 

Turning to Asia, Hong Kong’s Hang Seng jumped 1% to 26 200, hitting a four-year high and extending its winning streak to four sessions. Gains were broad-based, supported by expectations of the US rate cut and fresh hopes of Beijing stimulus after Chinese CPI recorded its steepest drop in six months. Producer deflation also eased, suggesting progress in curbing corporate price wars. Japan’s Nikkei climbed 0.87% to 43 838, while the Topix rose 0.60% to 3 141, as tech stocks rallied in line with US peers, with Oracle’s 28% post-market surge adding momentum.

In South Africa, the rand firmed after weaker US PPI figures reinforced expectations of imminent rate cuts by the Federal Reserve. By 18h00, the local currency traded at R17.47 to the dollar. In the equity market, the JSE All Share Index rose 0.35% and the Top 40 gained 0.42%, while industrial stocks bucked the trend, closing 0.32% lower.

Commodities strengthened across the board. Oil extended its rally for a third straight session, with WTI crude climbing more than 2% to just under $64 a barrel and Brent adding 0.62% to trade at $66.80. Geopolitical tensions provided further support after President Donald Trump raised concerns over Russian drone activity near Poland, sparking speculation of tougher measures against Russian energy exports. Precious metals also advanced, with gold up 0.59% at $3 647.19 per ounce, while silver and platinum gained 0.79% and 1.88%, respectively.