US Futures Extend Pullback Ahead of CPI

Futures tracking US stock indices rebounded on Tuesday after softer inflation data erased the risk of a Federal Reserve rate hike this month. Contracts for the S&P 500 swung to 0.3% higher and those for the Nasdaq 100 gained nearly 1%, while the Dow erased a 500 point deficit to set up a flat open. The US CPI fell more than expected and the core gauge surprisingly refrained from increasing, easing concerns that higher underlying price growth would force the Fed to start hiking rates by their next meeting. This was magnified by another rally in energy prices after the US and Iran maintained strikes against each other. Chip producers rebounded from yesterday's selloff with Micron and Sandisk adding 5% each premarket. On the other hand, the country's largest banks were lower. JPMorgan fell 2.5% despite posting its strongest profit level ever, and Bank of America dropped 0.8% despite beating earnings. Likewise, Wells Fargo sank 2% even though its earnings report was also seen as a beat.

Futures tracking US stock indices fell for a second session on Tuesday as concerns of higher interest rates lifted yields ahead of fresh inflation data. Contracts tracking the S&P 500 fell around 0.3% and those for the Dow slipped 500 points. Meanwhile, chip producers halted their selloff to stabilize the Nasdaq 100. Energy prices climbed further as the Iran struck tankers crossing the Strait of Hormuz and the US signaled it will tighten its blockade. The developments followed hawkish statements from FOMC Governor Waller, warning that higher rates may be needed to tame higher core inflation. AI hyperscalers were sharply lower premarket, with Microsoft and Oracle dropping around 3% each, while SpaceX fell 1% to erase nearly all its post-IPO gains. In turn JPMorgan fell 2.5% despite posting its strongest profit level ever, and Bank of America dropped 0.8% despite beating earnings. Likewise, Wells Fargo sank 2% even though its earnings report was also seen as a beat.

US stock futures edged lower on Tuesday as investors assessed escalating tensions in the Middle East after President Donald Trump announced plans to reinstate a blockade on Iranian vessels transiting the Strait of Hormuz. The move sent oil prices sharply higher and weighed on equities, fueling concerns that central banks may need to raise interest rates to contain renewed inflationary pressures. Investors also awaited key US inflation data and Fed Chair Kevin Warsh’s testimony before Congress later on Tuesday. On the corporate front, earnings from JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, and Wells Fargo are due later today. In regular trading on Monday, the Dow fell 0.26%, the S&P 500 declined 0.79%, and the Nasdaq Composite dropped 1.55%. Chipmakers led the losses amid persistent concerns that AI hyperscalers could scale back spending on AI infrastructure, with Micron (-4.3%), Nvidia (-3.5%), Sandisk (-12.6%), AMD (-4.2%), and Intel (-6.1%) all ending lower.