S&P 500 Holds Near Record Highs as Traders Brace for April CPI

CNBC reported Monday night that U.S. stock futures were barely moving. Traders were positioning ahead of April’s consumer price index release, due Tuesday morning at 8:30 a.m. ET.

S&P 500 futures edged fractionally higher in overnight trading. Nasdaq 100 futures added 0.1%, while Dow futures gained roughly 23 points, less than 0.1%.

Markets Close at Fresh Highs Before the Pause

During Monday’s regular session, equities pushed higher across the board. The S&P 500 added 0.19%, reaching a new intraday and closing record. The Nasdaq Composite eked out a 0.1% advance. The Dow Jones Industrial Average gained 95 points, or 0.19%.

Energy led sectoral gains, rising 2.63% on the day. Materials, industrials, and technology each advanced more than 1%. Communication services was the session’s notable laggard, falling 2.33%.

Also Read: Fed Holds Rates Steady as Inflation Outlook Remains Uncertain

Iran Ceasefire Strain Lifts Oil Prices

Crude prices climbed Monday after President Donald Trump publicly questioned the durability of the month-old U.S.-Iran ceasefire. Trump described it as being in severe jeopardy, following Tehran’s rejection of terms and the submission of a counter-proposal Washington found unacceptable.

Iran’s demands in that counter-proposal reportedly include war reparations, full control over the Strait of Hormuz, the release of frozen assets, and the removal of existing sanctions. The standoff introduced a fresh geopolitical risk premium into oil markets and weighed on sentiment late in the session.

What Economists Expect From April CPI

Economists surveyed by Dow Jones forecast April’s headline CPI to show a 3.7% year-over-year gain. Month-over-month, the index is expected to have climbed 0.6%. Tuesday’s data will also include final readings on average hourly earnings and the average workweek.

Also Read: Oil Surges on Middle East Supply Risk as Iran Talks Stall

Bulls Point to Corporate Profits as a Floor

Despite the dual uncertainties of inflation and geopolitics, some strategists stayed constructive. Marci McGregor, head of portfolio strategy at Merrill and Bank of America Private Bank, told CNBC that any post-rally weakness would represent a buying opportunity. She pointed to strong corporate earnings, capital expenditure growth, and a resilient labor market as reasons to remain optimistic.

A busy earnings slate awaits traders Tuesday. Under Armour, Vodafone, On Holding, eToro, and Tencent Music Entertainment are all scheduled to report before the opening bell.

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