S&P 500, Nasdaq futures extend losses slightly after August PPI data

U.S. equity futures extended their declines following the release of hotter-than-expected producer inflation data for August, dampening investor sentiment ahead of the regular trading session. A report published by the Labor Department revealed that the Producer Price Index (PPI) increased by 5.4% on an annual basis, slightly surpassing economists' consensus estimates of a 5.3% rise. On a monthly basis, producer prices climbed 0.4%, aligning with market forecasts. The slightly elevated wholesale inflation reading stoked concerns regarding persistent price pressures in the economy, putting downward pressure across major benchmark futures contracts. In pre-market trading, S&P 500 E-minis fell 36.25 points, or 0.47%, while Dow E-minis shed 152 points, or 0.29%. The tech-heavy Nasdaq 100 E-minis witnessed the steepest drop, declining 325 points, or 1.1%. The market reaction reflects ongoing sensitivity among equity investors toward inflation readings, which play a pivotal role in shaping expectations around the Federal Reserve's interest rate path and broader monetary policy decisions.