5 Things to Know Before the Stock Market Opens

• Oracle stock fell into negative territory for the year after announcing plans to raise $10 billion in debt and $5 billion through stock sales in fiscal 2026, plus another $40 billion in fiscal 2027, despite beating earnings estimates
• May wholesale inflation report expected to show 0.7% price increase, following consumer price data that showed persistent inflation driven by surging fuel prices from the Iran war
• Microsoft planning 'major' Xbox layoffs under new division CEO Asha Sharma to be announced after fiscal year ends in June, following years of gaming acquisitions and studio closures to improve margins

Market Summary: Pre-Market Brief

Market Overview

Stock futures pointed higher following two consecutive days of declines, with Nasdaq futures up 1.3%, S&P 500 futures up 0.8%, and Dow futures rising 0.8%. The recent selloff was driven by tech sector weakness, concerning inflation data, and Middle East developments. WTI crude oil fell 1% to $89/barrel, gold declined 0.5% to $4,110/ounce, and Bitcoin traded at $63,100. The 10-year Treasury yield dropped to 4.52% from 4.56%.

Oracle Stock Decline

Oracle shares tumbled despite beating analyst earnings expectations, as investors reacted negatively to aggressive fundraising plans. The company announced intentions to raise $10 billion through debt and $5 billion via stock sales in fiscal 2026, plus another $40 billion through combined debt and equity in fiscal 2027. The stock turned negative for the year following the announcement.

Inflation Data Watch

A second key inflation report was due at 8:30 a.m. ET, with economists expecting the May Producer Price Index (wholesale inflation) to show a 0.7% increase. This follows disappointing consumer price data released the previous day. Rising inflation, fueled by higher fuel prices related to the Iran conflict, has intensified concerns about potential Federal Reserve interest rate hikes.

Corporate Developments

Adobe was scheduled to report earnings after market close, with analysts expecting $5.81 in adjusted earnings per share. Investors are watching for updates on the CEO succession following Shantanu Narayen's surprise retirement announcement.

Microsoft reportedly plans "major" Xbox layoffs under new division CEO Asha Sharma, to be announced after the fiscal year ends in June, as the company continues restructuring its gaming division.