Stocks Slip Before May Us Cpi as Tech Weakens
US stock futures fell on Wednesday ahead of us cpi, with the Nasdaq 100 down 1.7% as Tuesday's tech sell-off deepened. S&P 500 futures sank 1.2%, while Dow Jones Industrial Average futures fell around 1% as traders positioned for the 8:30 a.m. ET inflation release.
The May report was expected to show prices rose 4.2% from a year earlier. That would keep inflation at a level not seen in three years, after the annual measure reached 4.2% in May and headline inflation rose 0.5% month over month.
Tech Stocks Face 1.7% Pressure
1.7% was the drop in Nasdaq 100 futures, extending a slide in technology shares that had already started on Tuesday. The move comes as investors trimmed exposure to the AI trade and waited for a reading that could shape expectations for Federal Reserve policy this year.
2.9% was the year-over-year rise in core Consumer Price Index prices in the latest data, while the monthly increase was 0.2%. That combination leaves little room for a soft print to offset the recent run-up in prices, and it keeps rate expectations tied to a single morning report.
Trump Pushes Iran Price Risk
President Donald Trump said Iran had "taken too long" to negotiate and would have to "pay the price" after posting, "They've taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!" Brent oil prices rose nearly 2% to $93 per barrel after the post, while WTI hovered just below $90 per barrel.
Tuesday's data already showed the annual inflation rate at 4.2%, the first time the measure had reached 4% in three years, and the energy move adds another pressure point before traders see whether that pace holds. If oil stays elevated, the next CPI read could carry more weight for consumers facing higher fuel costs and for growth stocks whose valuations are tied to lower rates.
US Central Command Hits Iran
The conflict escalated overnight as the US and Iran traded strikes after a US Apache helicopter was downed on Monday near the Strait of Hormuz. US Central Command said the United States launched airstrikes within Iran on Tuesday targeting air defense, ground control stations, and surveillance radar sites.
That mix of stronger energy prices and a firmer inflation backdrop leaves traders focused on one number first and everything else second. A hotter reading could keep pressure on tech shares and extend the energy bid, while a softer one would have to compete with the oil move already in place.
