Nasdaq 100 Falls 0.7% as Cpi Readout Looms
Nasdaq 100 futures fell 0.7% on Tuesday as traders waited for the April cpi report and watched whether higher energy prices would feed into consumer prices. S&P 500 futures shed roughly 0.4%, while Dow Jones Industrial Average futures were broadly flat. For equity investors, the session starts with inflation data that could shift Federal Reserve expectations before the opening bell.
April cpi and energy costs
3.7% was economists’ expected year-over-year rise in April headline CPI, a reading due Tuesday that would keep pressure on the Fed if it lands at that pace. Investors were also watching for pass-through from higher energy prices into food costs, with West Texas Intermediate crude up 3.7% to over $101 a barrel and Brent crude futures up 3.4% to nearly $108 a barrel.
$101 a barrel in West Texas Intermediate and nearly $108 a barrel in Brent put fuel costs back at the center of the inflation debate. If that strength shows up in the CPI print, the move would give traders a cleaner read on how much room the Fed has to ease policy after Friday’s stronger-than-expected April jobs data.
Trump, China, and Iran
Donald Trump said the US-Iran ceasefire agreement is on "massive life support" as he prepared to begin a trip to China on Tuesday and meet with President Xi Jinping. He also planned to bring 16 top executives on the trip, adding a policy and corporate backdrop to a session already shaped by inflation anxiety and oil’s rise.
16 top executives joining Trump’s China visit is a reminder that the market is tracking more than one risk at once. The same session that could reset rate expectations on CPI also has to absorb geopolitical pressure from Iran, which is helping keep crude elevated and making the inflation print more important for near-term positioning.
eBay rejects $55 billion bid
$55 billion was the size of the GameStop proposal that eBay rejected on Tuesday, with board chair Paul Pressler writing, "The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it," and, "We have concluded that your proposal is neither credible nor attractive," in a letter to GameStop. The response shuts down, for now, a takeover approach launched last week by GameStop and Ryan Cohen.
Paul Pressler’s rejection leaves GameStop with a public setback just as the broader market is waiting on cpi and policy clues from the Fed. For traders, the day now splits into two pressures: macro data that can move rates and futures, and a deal fight that can still move single-name shares if either side revisits terms.
