Futures contracts for equities suggested a decline as market participants braced for a crucial inflation report from the U.S. on Tuesday. Concurrently, oil prices continued their ascent, spurred by President Donald Trump’s remarks regarding the ceasefire with Iran being “on massive life support.” In the most recent trading session, futures for the Nasdaq 100, S&P 500, and Dow Jones Industrial Average recorded decreases of 0.8%, 0.4%, and 0.1%, respectively. Yesterday, technology equities played a significant role in the upward movement of the primary U.S. indices at the start of the week, with the S&P 500 and Nasdaq Composite reaching record closing levels. On Tuesday morning, investors will focus on the Bureau of Labor Statistics as it releases the Consumer Price Index for April, set to be published at 8:30 am. Analysts project that the data will indicate a 3.8% year-over-year increase in prices for April, representing an increase from the 3.3% annual rise noted in March, thus marking the highest inflation rate seen since May 2023.
Excluding the fluctuations in food and energy prices—gasoline has increased by over $1.50 a gallon since the onset of the conflict, as reported —”core” inflation is projected to have risen by 2.7% over the year, an increase from 2.6% in March, marking its highest level since September. Before the CPI was released, the yield on the 10-year Treasury, which significantly influences interest rates for mortgages and other consumer loans, was recorded at 4.43%, up from 4.41% at the previous Friday’s close. Oil prices, which rose yesterday after Trump’s rejection of Iran’s response to a U.S. proposal intended to resolve the conflict, continued their upward trend on Tuesday. West Texas Intermediate futures, the U.S. crude oil benchmark, increased by 3.8% to $101.80 a barrel, whereas front-month contracts of Brent crude, the global benchmark, rose by 3.7% to $108. Gold futures recorded a decline of 0.4%, concluding at $4,710 per ounce.
Bitcoin was approximately $80,900, reflecting a decrease from overnight highs of about $82,100. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, experienced a rise of 0.3%, attaining a level of 98.24. In corporate developments, shares of the Magnificent Seven tech giants exhibited a downward trend ahead of the market opening, as a majority of them concluded the previous trading session in the red. Nvidia, recognized as the world’s most valuable company, concluded the trading session with a 2% increase, achieving a new all-time high; however, it experienced a decline of nearly 1% in early Tuesday trading. GameStop’s shares experienced a decline of nearly 5% in premarket trading following eBay’s dismissal of the video game retailer’s unsolicited takeover proposal, which was characterized as “neither credible nor attractive” and valued at $56 billion. EBay’s stock saw a decrease of under 1%.
Chipmakers Intel and Micron Technology, which reached their most recent record highs yesterday, declined by 3.5% and 2.5%, respectively. Furthermore, Hims & Hers Health witnessed a 15% decrease subsequent to the revelation of an unforeseen net loss. GitLab experienced a decline of 12% following the announcement of its intention to downsize its workforce “to accelerate our unique opportunity in the agentic era.” Conversely, On Holding experienced a 2% increase following the Swiss sneaker manufacturer’s announcement of record first-quarter net sales and profitability “despite meaningful headwinds from higher U.S. tariffs.” Tomorrow, investors will shift their focus to the summit in Beijing featuring Trump and Chinese leader Xi Jinping.