U.S. stock futures edged lower Tuesday as investors prepared for April consumer price index data and monitored a jump in oil prices. The cautious tone came after Wall Street ended the previous session with fresh record highs for the S&P 500 and Nasdaq Composite.
S&P 500 futures fell 0.3%, while Nasdaq 100 futures dropped 0.7%. Futures tied to the Dow Jones Industrial Average slipped 46 points, or 0.1%, as traders waited for more clarity on inflation and energy market moves.
Inflation data takes center stage
The April CPI report is due at 8:30 a.m. ET and is likely to shape expectations for markets in the near term. Economists surveyed by Dow Jones expect headline inflation to rise 3.7% from a year earlier, while monthly CPI is forecast to increase 0.6%.
That release matters because it could reinforce or challenge the recent optimism that has helped lift stocks. Even with the softer tone in futures, investors are still coming off a strong stretch driven by resilient earnings and broad market momentum.
Oil prices add to market caution
Energy prices moved sharply higher, with West Texas Intermediate futures up 3% to $101.01 per barrel and Brent crude gaining 2.7% to $107.02. The latest rise extended Monday’s advance after President Donald Trump called the month-old ceasefire between the U.S. and Iran “unbelievably weak” and said it was “on massive life support.”
The tension followed Iran’s counterproposal, which reportedly called for war reparations, full sovereignty over the Strait of Hormuz, the release of frozen Iranian assets and the lifting of sanctions. Higher crude prices can feed into inflation expectations, making the CPI reading even more important for traders.
Stocks still have support from earnings
Despite the dip in futures, the broader market has remained well supported by corporate results. The S&P 500 and Nasdaq Composite both reached new record highs in the previous session, extending a rally that has been powered by earnings strength and confidence in the economy.
Marci McGregor, head of portfolio strategy and chief investment office at Merrill and Bank of America Private Bank, said on CNBC’s “Closing Bell” that the market still looks constructive. “If we get weakness after this really strong recovery from the March lows, I would see it as a buying opportunity,” she said, pointing to corporate profits, capex and a strong labor market.
The trading session now hinges on whether the inflation report confirms that price pressures remain manageable, while higher oil prices and ongoing geopolitical risks keep sentiment more fragile at the open.
Read more at: www.cnbc.com
