Tonight’s Highlights | U.S. Key Inflation Data Hits Six-month High; Alibaba Jumps Over 6% Pre-market

In Friday’s pre-market, with PCE data signaling persistent U.S. inflationary pressure, major index futures remained weak.  

 

 

As of this report, Nasdaq 100 futures fell 0.45%, S&P 500 futures dropped 0.25%, and Dow futures declined 0.20%. The July core PCE price index, a key inflation gauge, rose 2.9% year-over-year, meeting expectations and hitting the highest level since February.  

 

(Chart: U.S. core PCE annual rate, source: TradingEconomics)  

 

Before the Fed’s mid-September meeting, a nonfarm payrolls report (next Friday) and August CPI (following Thursday) are due. While markets expect the Fed’s first rate cut of 2025 in September, new data will shape policy consensus.

 

Fed “dovish” figure Christopher Waller said he “supports a 25-basis-point cut in September” based on current data but could shift if next Friday’s jobs report shows significant economic weakness and controlled inflation. Waller added that he expects “more cuts over the next 3-6 months” as Fed rates are 1.5 points above neutral.  

 

Investors note that after today, U.S. markets enter the Labor Day weekend, followed by the historically weak September trading period. Bank of America’s global chief technical strategist Paul Ciana cited data since 1927, showing the S&P 500 falls 56% of the time in September, with an average drop of 1.17%.  

 

Tonight, a hearing in the Fed governor vs. President Trump case is set for the U.S. Capital Court. Per latest updates, Trump filed to dismiss Governor Cooke’s injunction against termination, while the Fed, in a separate filing, took no stance but requested a “swift ruling” to resolve the dispute.  

Other market news  

Data center stocks Dell, Marvell Technology weaken pre-market  

 

As of this report, Dell Technologies fell 6.3% after its latest earnings missed sales expectations and profit margins fell short. Marvell Technology plunged 14.15% due to weaker-than-expected data center performance and a below-consensus revenue outlook.

 

Bank of America downgraded Marvell from “buy” to “hold” on Friday, citing reduced confidence in its AI growth prospects through 2026.  

 

Survey: Tesla’s FSD feature deters more buyers  

 

Slingshot Strategies’ August EV Intelligence Report surveyed 8,000 Americans, finding only 14% said Tesla’s FSD would make them more likely to buy, while 35% said it would reduce their likelihood.  

 

UK bank stocks fall amid calls for windfall tax  

 

A report from the UK’s Institute for Public Policy Research noted “staggering” subsidies to commercial banks from the Bank of England’s quantitative easing, urging Chancellor Reeves to impose a windfall tax to raise billions.

 

As of this report, HSBC fell 1.23%, NatWest dropped 5.41%, Lloyds Banking Group slid 5.15%, and Barclays declined 4.09% pre-market.  

 

Alibaba’s Q1 2026 revenue hits 247.65 billion yuan  

 

Alibaba rose 6.35% pre-market after its latest earnings. Q1 2026 revenue reached 247.65 billion yuan, up 2%, or 10% excluding disposed businesses like Gaoxin Retail and Intime. Net income was 42.382 billion yuan, up 76%, while non-GAAP net income fell 18% to 33.51 billion yuan from 40.691 billion yuan last year.

 

Cloud Intelligence Group revenue grew 26% to 33.398 billion yuan, driven by public cloud and AI-related product adoption.