US Futures Pull Back

US equity futures maintained their pullback after a hot CPI report for April consolidated increasing concerns that higher energy prices may directly and indirectly dent earnings prospectives. Contracts for the S&P 500 and the Nasdaq 100 pulled back up to 1%, while those for the Dow were close to the flatline. Headline inflation in the US rose to a three-year high of 3.8%, above expectations, to underscore the impact of higher fuel inflation in general price growth. The Federal Reserve is not expected to deliver another rate cut this year amid the risk of an inflationary shock, especially with the combination of robust labor data that has recently been published. AI hyperscalers and major chip producers were both lower pre-market to halt their surge this month, with Tesla, Nvidia, Amazon, and Alphabet down more than 1% premarket. Meanwhile, telehealth company Hims & Hers plunged 15% after its first-quarter earnings report missed their expectations.

US equity futures edged lower ahead of April's CPI report, easing from the record highs last session as further concerns of energy-fueled inflation halted the rally for AI stocks. Contracts for the S&P 500 and the Nasdaq 100 pulled back up to 1%, while those for the Dow were close to the flatline. US headline inflation is expected to have risen further to an over two-year high as the war in the Middle East lifted energy costs for businesses and households. The Federal Reserve is not expected to deliver another rate cut this year amid the risk of an inflationary shock, especially with the combination of robust labor data that has recently been published. AI hyperscalers and major chip producers were both lower pre-market to halt their surge this month, with Tesla, Nvidia, Amazon, and Alphabet down more than 1% premarket. Meanwhile, telehealth company Hims & Hers plunged 15% after its first-quarter earnings report missed their expectations.

US stock futures slipped on Tuesday as investors prepared for April’s consumer inflation report, which may offer fresh insight into how the Iran war is influencing the economy and shaping expectations for Federal Reserve policy. Traders also continued monitoring developments in the Middle East after President Trump said the US-Iran ceasefire was on “massive life support” following his rejection of Tehran’s latest peace proposal. Meanwhile, Trump is expected to meet with Chinese President Xi Jinping later this week, with trade and artificial intelligence likely to dominate discussions between the two leaders. During Monday’s regular session, the S&P 500 and Nasdaq Composite advanced 0.19% and 0.1%, respectively, with both indexes closing at fresh record highs as chipmakers extended gains amid ongoing optimism surrounding AI-driven demand. The Dow also added 0.19%. Six of the 11 major S&P sectors finished in positive territory, led by energy, materials, and industrial stocks.