Wall Street Eyes Producer Price Data After Hot CPI Reading

CNBC reported early Wednesday that US stock futures broadly advanced as traders positioned themselves ahead of April’s producer price index release, scheduled for 8:30 a.m. Eastern time.

S&P 500 futures added 0.1% and Nasdaq 100 futures climbed 0.27%. Dow Jones futures were roughly flat heading into the session.

Tuesday’s Session Weighed on Tech and Risk Assets

The prior session ended with modest losses for key benchmarks. The S&P 500 slipped 0.16% and the Nasdaq Composite fell 0.71%, pulling both indices back from recent record closes. The Dow Jones Industrial Average managed a small gain of around 56 points, or 0.11%.

Technology shares bore the brunt of the selloff. The sector dropped roughly 1% on the day. Consumer discretionary stocks also declined, falling more than 1%, while health care outperformed with a gain of nearly 2%. Consumer staples and financials also closed higher.

Two factors pressured sentiment. First, President Donald Trump described a ceasefire agreement between the US and Iran as deeply fragile, raising fresh concerns about Middle East stability and pushing oil prices higher. Second, April’s consumer price index came in above forecasts, showing consumer prices rising at their fastest annual pace in roughly three years.

A Brief History of Inflation Pressure in 2026

The hot CPI print followed months of debate among investors about whether the Federal Reserve’s current policy stance is sufficiently restrictive. Elevated services inflation and sticky shelter costs have kept policymakers cautious throughout the year. Wednesday’s producer price index is considered a leading indicator for future consumer price trends, making it closely watched in the current environment.

Economists surveyed by Dow Jones expected the headline PPI to rise 0.5% month-on-month, matching March’s pace. The core reading, which strips out food and energy, was forecast at 0.4%.

AI Trade Broadens Beyond Pure-Play Tech

Despite Tuesday’s dip in technology shares, market strategists argued the broader artificial intelligence investment theme remains intact. Olaolu Aganga, head of portfolio construction at Citi Wealth, told CNBC that AI spending is now expanding well beyond traditional tech companies. She pointed to energy infrastructure and grid-related businesses as areas where durable earnings growth could emerge as AI buildout accelerates. Investors who missed the initial wave still have entry points in adjacent sectors, she suggested.

Earnings results from Allianz, Birkenstock, Alibaba, and Nebius were also due before Wednesday’s opening bell, adding another layer of market catalysts to an already data-heavy morning.

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