Pre-Market Update: S&P 500, Nasdaq and Bitcoin Fall Ahead of CPI Inflation Data

TLDR

• U.S. stock futures are lower Tuesday, with Nasdaq 100 futures down 0.7% and S&P 500 futures off 0.4%
• April CPI data is due Tuesday, with headline inflation expected at 3.7% year-over-year
• Trump said the U.S.-Iran ceasefire is on “massive life support,” keeping oil prices elevated
• West Texas Intermediate crude rose over 3.7% to above $101 a barrel
• Bitcoin is also falling as Middle East tensions weigh on risk assets

U.S. stock futures dropped Tuesday morning as investors braced for the April Consumer Price Index report and kept a close eye on the U.S.-Iran stalemate.

Nasdaq 100 futures led the declines, falling 0.7%. S&P 500 futures dropped 0.4%, while Dow futures slipped about 0.1%. This followed record closing highs for both the S&P 500 and Nasdaq on Monday.

The CPI report for April is the key event of the day. Economists expect headline inflation to have risen 3.7% from a year ago. The data will be watched closely for signs that higher energy prices, caused by the Strait of Hormuz blockade, are feeding into broader consumer costs.

A stronger-than-expected inflation reading could change expectations around Federal Reserve interest rate policy. Friday’s April jobs report already came in above forecasts, adding to that pressure.

Oil Prices Climb as Ceasefire Talks Stall

President Trump said Monday that the U.S.-Iran ceasefire deal is on “massive life support.” Talks between the two sides are continuing, but progress has been slow.

West Texas Intermediate crude climbed 3.7% to over $101 a barrel. Brent crude rose 3.4% to nearly $108 a barrel. Jet fuel and gasoline prices have risen since the conflict began.

Michael Brown, strategist at Pepperstone, said talks are still moving toward de-escalation, but at a slow pace. He noted the Strait of Hormuz remains essentially closed.

Bitcoin also fell as the fragile ceasefire weighed on risk appetite across markets.

The dollar edged up 0.3% against a basket of currencies. The yield on the 10-year Treasury note rose two basis points to 4.44%.

Chip Stocks Under Pressure

Tech stocks came under added pressure after South Korea’s senior presidential secretary for policy called for a social tax on artificial intelligence profits late Monday.

That triggered a selloff in chip makers Samsung Electronics and SK Hynix. South Korea’s Kospi index closed 2.3% lower.

The chip rally that helped push the Nasdaq to record highs on Monday lost momentum in Tuesday’s premarket session.

Also on Tuesday, President Trump is heading to China to meet with President Xi Jinping. Trade and artificial intelligence are expected to dominate their talks. Trump has invited 16 executives, including Tesla’s Elon Musk and Apple’s Tim Cook, to join him on the trip.

Markets will be watching both the CPI print and any headlines from the Trump-Xi summit for direction.

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