Stock market futures: What is affecting Dow, S&P and Nasdaq futures today?
Stock market futures fell early Tuesday ahead of the release of the April consumer price index (CPI) report, which is expected to show the first impact of President Donald Trump’s tariffs on inflation. The Dow Jones Industrial Average (Dow) Futures fell 247 points, or 0.5%. The S&P 500 futures and Nasdaq-100 futures dipped 0.2% each.
The CPI report showed an increase of 0.2% last month after dipping 0.1% in March.
Read More: April CPI report: What’s exactly in the latest inflation report – explaining key numbers
What is the CPI report?
The CPI report is a monthly economic indicator published by the US Bureau of Labor Statistics (BLS) that measures the average change over time in the prices paid by urban consumers for a market basket of goods and services, such as food, housing, transportation, medical care, and entertainment. It serves as a key gauge of inflation.
According to a CNBC report citing Dow Jones consensus, the CPI is expected to stay at a 2.4% rate in April.
The stock market futures fall came a day after a huge rally on Monday after the US and China agreed on a trade deal to slash tariffs for 90 days. The Dow surged over 1,100 points, and the S&P 500 surged over 3%.
One of the big losers premarket on Tuesday was UnitedHealth. Shares dropped 7% after the company announced it is suspending its 2025 outlook due to higher-than-expected medical expenditures. UnitedHealth further announced that CEO Andrew Witty was stepping down, effective immediately, for personal reasons. Stephen Hemsley will take on his former role.
Wells Fargo recommends a nimble approach
Wells Fargo noted that investors should remain flexible.
“Despite the sharp rebound in more risk assets, markets are by no means out of the woods, and we expect more volatility along with some resistance as investors continue to evaluate the tariff situation and its impact on the global economy and corporate earnings,” Wells Fargo Investment Institute global equity strategist Chris Haverland wrote.
“We recommend a nimble approach to rebalancing for all major asset classes, as we anticipate range- bound markets toward year end,” he added