US stock futures fell on Tuesday as investors waited for the latest reading on consumer inflation to provide clues to the Iran war’s impact on the economy and to help set expectations for the path of interest rates.

Dow Jones Industrial Average futures (YM=F) nudged down 0.1%, while S&P 500 futures (^GSPC) shed roughly 0.3%, after the broad benchmark clinched a fresh record high, News.Az reports, citing Yahoo Finance.

Contracts on the tech-heavy Nasdaq 100 (NQ=F) led losses, down 0.6% on the heels of a winning day for chip stocks on Wall Street.

Markets are bracing for an important test with Tuesday’s release of the Consumer Price Index (CPI) for April.

The inflation data will be scrutinzed for signs of pass-through from higher energy prices from the Strait of Hormuz blockade, in food costs in particular.

A hot reading could reset expectations for Federal Reserve monetary policy, especially in light of Friday’s stronger-than-expected April jobs report. Economists expect headline CPI to have risen 3.7% in April.

Also on Tuesday, President Trump will kick off a trip to China, where he will meet with the country’s President Xi Jinping. Trade and AI are expected to top the leaders’ agenda, and Trump has invited 16 top executives, including Tesla CEO Elon Musk and Apple CEO Tim Cook, to join him during the visit.

In the background, escalating tensions between the US and Iran still keeping investors on edge. Trump said the US-Iran ceasefire agreement between the two countries is on “massive life support” amid a stalemate over a potential peace plan. Oil prices continued to rally, with West Texas Intermediate (CL=F) crude up 2.3% to cross the key $100 a barrel mark, while Brent crude futures (BZ=F) were up 1.8% at over $106 a barrel.

Earnings season also rolls on, with results expected from Applied Materials (AMAT), Cisco Systems (CSCO), Alibaba Group (BABA), and Birkenstock (BIRK).

News.Az 

By Nijat Babayev