S&P 500 : Tesla Tumbles, CVS Surges as Traders Await CPI and Fed Outlook

Market Outlook: CPI and Fed Signals in Focus

Stock futures showed little direction ahead of the CPI report, as traders held back from major moves. On Tuesday, the S&P 500 ended the session flat, the Nasdaq slipped 0.4%, and the Dow climbed 0.3%.

Beyond inflation data, investors are closely watching corporate earnings. Lyft shares plunged 12.4% after issuing weak guidance, while Super Micro Computer surged 7.6% on optimism about its ability to file overdue regulatory reports.

If inflation comes in hotter than expected, bond yields could rise, pressuring equities. A softer CPI reading may reignite hopes for mid-year rate cuts, providing relief to growth stocks. With inflation risks, Fed policy uncertainty, and ongoing earnings reactions at play, traders should brace for heightened market volatility.

More Information in our Economic Calendar.