Wall Street Holds Steady as PPI Report Looms After Hot CPI Print
U.S. stock futures were barely moved Tuesday night, CNBC reported, as traders braced for the release of April’s producer price index — the next major test of where inflation is headed.
S&P 500 and Nasdaq 100 futures each edged down around 0.1%. Dow Jones futures slipped fewer than 10 points. The mild overnight moves followed a softer session on Wall Street Tuesday.
Stocks Slip From Records as Tech and Oil Weigh
The S&P 500 retreated 0.16% on Tuesday, stepping back from its recent record close. The Nasdaq Composite fell 0.71%, dragged lower by broad weakness across the technology sector. The Dow Jones Industrial Average bucked the trend, adding roughly 56 points, or just over 0.1%.
Two forces conspired against sentiment. Higher crude prices followed remarks from President Donald Trump, who described the month-old U.S.-Iran ceasefire as “unbelievably weak” and said it was on “massive life support” after rejecting a counterproposal from Tehran. That uncertainty pushed energy costs higher and rattled risk appetite.
Hot CPI Sets the Stage for PPI Watch
April’s consumer price index, released earlier Tuesday, came in above expectations. Consumer prices rose at their fastest annual pace in roughly three years, keeping pressure on the Federal Reserve to remain cautious about any pivot toward rate cuts.
Attention now shifts to Wednesday’s producer price index, scheduled for 8:30 a.m. Eastern. Economists polled by Dow Jones anticipated a headline monthly gain of 0.5%, matching March’s reading. The core figure, which strips out food and energy, was forecast at 0.4% for the month.
Background: AI Spending Broadens Market Opportunity
Even with technology stocks taking a breather Tuesday, artificial intelligence investment has remained the market’s dominant narrative through 2026. Olaolu Aganga, head of portfolio construction at Citi Wealth, told CNBC that AI capital spending is now spilling beyond pure-play tech companies into adjacent sectors.
She pointed to energy infrastructure and grid modernisation as areas with durable earnings potential. Aganga argued that investors who missed the first leg of the AI rally still have time to position in themes linked to energy security and capital expenditure buildout.
Asia Mixed; Earnings and Geopolitics in Focus
Across Asia-Pacific, markets were divided overnight. South Korea’s Kospi gained 1.21% while Japan’s Nikkei added 0.22%. China’s CSI 300 slipped 0.34%. Investors were also tracking developments around an anticipated meeting between Trump and Chinese President Xi Jinping, where trade policy is expected to feature prominently.
On the corporate calendar, Allianz, Birkenstock, Alibaba, and Nebius were all set to report earnings ahead of Wednesday’s opening bell.
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