U.S. stock futures hovered around flat levels on Tuesday as investors looked ahead to the next inflation report and possible interest rate cuts by the Federal Reserve.
The major indices rose on Monday, with traders seeking opportunities after last week’s sell-off, bolstered by a softer-than-expected August jobs report and disappointing manufacturing data.
Markets are trying to gauge the Fed’s monetary policy outlook, with expectations of a potential rate cut at its September 17-18 meeting. However, it is not yet clear whether policymakers will make a 25 or 50 basis point reduction. The situation may well become clearer on Wednesday, when the latest U.S. consumer price index, a vital gauge of inflation, will be released.
Apple Stocks Are Down on Tuesday Ahead of the Market Open
pple (AAPL) shares were down Tuesday in pre-market trading after the tech giant unveiled the new iPhone 16, and the European Union’s top court ruled against the company in a two-year legal battle over its Irish taxes.
The Cupertino-based group announced a series of enhancements for its iPhone 16, including improvements to its Siri voice assistant and smart camera customizations for professional video editing. Apple hopes the iPhone 16, which goes on sale on September 20 with pre-orders starting Friday, will help revitalize its declining sales.
nalysts said the new iPhones and AI features largely met expectations set by Apple’s earlier disclosure of its plans to enhance AI capabilities.
The European Union’s Court of Justice ruled that Apple must repay nearly €13 billion in back taxes, reversing a previous decision in the company’s favor.
The European Union’s top court cited that two entities overseen by Apple—Apple Sales International (ASI) and Apple Operations Europe (AOE)—had illegally received state aid from Ireland in the form of tax breaks between 1991 and 2014.
Oracle Stock Soar
Oracle stock rose sharply ahead of the opening bell after the company reported better-than-expected fiscal first-quarter results, driven by strong demand for its cloud business.
The Texas-based cloud services company also reported a strategic alliance with Amazon Web Services (AWS), allowing customers to access Oracle Autonomous Database and Oracle Exadata Database within AWS.
The announcement comes after Oracle earlier reported that it had struck new partnerships with OpenAI, creator of Microsoft (MSFT)-backed ChatGPT, along with Google (GOOGL) Cloud in a bid to expand the reach of its artificial intelligence infrastructure.
During a conference call, CEO Safra Catz stated that Oracle’s database business is thriving and added that the cloud deals with Microsoft, Google, and AWS make it easier for customers to run their Oracle databases in the cloud.
Oracle reported adjusted earnings per share of $1.39 on revenue of $1.3 billion for the three months ending August 31.
Oil Prices Fall
Oil prices fell slightly in European markets on Tuesday as concerns about weak domestic demand in China outweighed the potential impact of Tropical Storm Francine on U.S. oil production.
Several oil companies, including Exxon Mobil (XOM), Shell (SHEL) and Chevron (CVX), are halting production and refining activities in the Gulf of Mexico because of Tropical Storm Francine. According to the National Hurricane Center, the storm is expected to intensify in the coming days.
However, the mood has been dampened by a string of weak economic data from China, which has fueled fears about tepid growth in the world’s top oil importer.
