Wall Street Steadies as Traders Brace for April PPI Data

CNBC reported Tuesday night that US stock futures were barely moving as investors positioned for another critical inflation print due Wednesday morning.

S&P 500 and Nasdaq 100 futures each edged down roughly 0.1%. Dow Jones futures slipped fewer than 10 points. The muted overnight session followed a choppy regular trading day on Wall Street.

Tuesday’s Session: Tech Drags, Dow Holds

The S&P 500 slipped 0.16% on Tuesday, pulling back from its recent record high. The Nasdaq Composite fell 0.71%, weighed down by broad weakness across technology stocks. The Dow Jones Industrial Average was the outlier, advancing roughly 56 points to close marginally higher.

Seven of the eleven market sectors finished the day in positive territory. Healthcare led all gainers, rising nearly 2%. Consumer staples and financials added 1.56% and 0.72%, respectively. Technology and consumer discretionary were among the session’s worst performers.

Geopolitics and Inflation Renew Market Pressure

Two forces unsettled investor sentiment through Tuesday’s session. First, President Donald Trump publicly labelled a month-old US-Iran ceasefire “unbelievably weak,” rejecting a counter-offer from Tehran and pushing oil prices higher. Energy costs feed directly into producer and consumer prices, complicating the Federal Reserve’s inflation calculus.

Second, traders were still absorbing Monday’s hotter-than-expected consumer price index reading for April. Consumer prices rose at their fastest annual pace in approximately three years, reinforcing expectations that the Fed has little room to cut rates in the near term.

Background: The Inflation Sequence Matters

The producer price index measures what businesses pay for inputs before costs reach consumers, making it a leading indicator of future consumer inflation. Economists polled by Dow Jones forecast a headline monthly gain of 0.5% for April, matching March’s pace. The core reading, which strips out food and energy, is expected at 0.4%. A result above those estimates could amplify concerns already stirred by the CPI print a day earlier.

AI Trade Finds New Ground, Earnings Ahead

Despite the tech pullback, the artificial intelligence investment theme remains the market’s dominant narrative for 2026. Olaolu Aganga, head of portfolio construction at Citi Wealth, told CNBC that AI capital spending is now spreading beyond the technology sector itself. She pointed to energy infrastructure and grid buildout as durable beneficiaries of that broader spending wave, offering entry points for investors who missed the initial rally.

Wednesday’s pre-market earnings slate includes Allianz, Birkenstock, Alibaba, and Nebius. In after-hours trading Tuesday, energy firm Nextpower surged roughly 10% after lifting its full-year revenue guidance, while aerospace company Karman shed nearly 11% on a marginal earnings miss.

Read Next: Fed Holds Rates Steady as Inflation Outlook Clouds Rate-Cut Path