(Editor’s note: The future prices of benchmark tracking ETFs, and the headline, the lede and the economic were updated in the story.)
U.S. stock futures fell on Tuesday after Monday’s higher close. This followed President Donald Trump‘s sharp criticism of Iran’s latest response to a U.S. proposal aimed at ending the conflict, saying the ceasefire is now “on life support.”
“I would call it the weakest right now,” Trump said, adding he viewed Tehran’s demands as unacceptable.
On the economic front, inflation ran hotter than anticipated, with the April Consumer Price Index (CPI) rising 3.8% year-over-year, which surpassed the 3.7% median estimate by FactSet. Core CPI, which excludes volatile food and energy costs, climbed 2.8% over the last 12 months and 0.4% monthly.
Meanwhile, the NFIB Small Business Optimism Index edged up 0.1 points to a reading of 95.9 in April, though it remains below its 52-year historical average.
Meanwhile, the 10-year Treasury bond yielded 4.43%, and the two-year bond was at 3.97%. The CME Group's FedWatch tool‘s projections show markets pricing a 97.6% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
| Index | Performance (+/-) |
| Dow Jones | -0.04% |
| S&P 500 | -0.38% |
| Nasdaq 100 | -0.73% |
| Russell 2000 | -0.45% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Tuesday. The SPY was down 0.52% at $735.45, while the QQQ declined 1.03% to $705.96.
Stocks In Focus
Gitlab
- Gitlab Inc. (NASDAQ:GTLB) plunged 8.97% in premarket on Tuesday after it announced a reduction in workforce to realign its operating structure.
- Benzinga’s Edge Stock Rankings indicate that AEHL maintains a weak price trend in the medium and long terms but a strong trend in the short term.
GoPro
- GoPro Inc. (NASDAQ:GPRO) shares jumped 5.30% as it reported better-than-expected first-quarter sales results and also announced the launch of a strategic review exploring the potential sale or merger.
- Benzinga’s Edge Stock Rankings indicate that GPRO maintains a strong price trend in the long, short, and medium terms.
Zoominfo Technologies
- Zoominfo Technologies Inc. (NASDAQ:GTM) tumbled 32.46% despite beating estimates as cautious forward guidance influenced market sentiment.
- Benzinga’s Edge Stock Rankings indicate that GTM maintains a weak price trend in the medium and long terms but a strong trend in the short term, with a moderate growth score.
Plug Power
- Plug Power Inc. (NASDAQ:PLUG) advanced 5.40% after posting its first-quarter results after Monday's closing bell, beating analyst estimates on the top and bottom lines.
- Benzinga’s Edge Stock Rankings indicate that PLUG maintains a strong price trend in the short, medium, and long terms.
AST SpaceMobile
- AST SpaceMobile Inc. (NASDAQ:ASTS) dropped 12.08% after reporting a first-quarter loss of $0.66 per share, wider than the expected $0.23 loss, while revenue of $14.74 million missed estimates of $37.63 million.
- Benzinga’s Edge Stock Rankings indicate that ASTS maintains a weak price trend in the medium and short terms but a strong trend in the long term.
Cues From Last Session
Materials, energy, and industrials equities posted the most significant gains on Monday, whereas communication services and consumer staples bucked the broader trend by finishing the session lower.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.19% | 49,704.47 |
| S&P 500 | 0.19% | 7,412.84 |
| Nasdaq Composite | 0.10% | 26,274.12 |
| Russell 2000 | 0.33% | 2,870.64 |
Insights From Analysts
Lawrence Gillum anticipates significant economic shifts as the Federal Reserve likely transitions to the leadership of Kevin Warsh. Gillum expects Warsh to champion a smaller Fed balance sheet and reduced forward guidance.
While Gillum notes that U.S. debt levels are projected to soar—potentially climbing above 120% of GDP by 2027—he reassures investors that “the U.S. is not on the verge of a fiscal crisis.” Furthermore, Gillum believes “the odds of aggressive rate cuts under a Warsh chairmanship appear low.”
Regarding the stock market, Gillum warns that less Fed intervention will result in heightened volatility. He predicts that equity and credit markets could face “sharper repricing around data releases” as investors adjust to fewer explicit policy commitments.
Consequently, Gillum advises that a less accommodative central bank will force “greater price discovery in risk assets.” Summing up the unpredictability of this incoming policy regime, Gillum aptly quotes Mike Tyson: “Everyone has a plan until they get punched in the mouth.”
Upcoming Economic Data
Here's what investors will be keeping an eye on Tuesday.
- New York Fed President John Williams spoke in Zurich at 3:15 a.m. ET.
- The NFIB Small Business Optimism Index rose slightly to 95.9.
- April’s headline CPI increased 3.8% year-over-year (beating the 3.7% estimate), while core CPI rose 2.8% year-over-year.
- Chicago Fed President Austan Goolsbee is scheduled to speak at 1:00 p.m., followed by the release of April’s monthly U.S. federal budget at 2:00 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 3.05% to hover around $101.06 per barrel.
Gold Spot US Dollar fell 0.76% to hover around $4,698.85 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.31% higher at the 98.2540 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.20% higher at $80,924.53 per coin, as per the last 24 hours.
Asian markets closed lower on Tuesday, except Japan's Nikkei 225 index. Australia's ASX 200, India’s Nifty 50, South Korea's Kospi, China’s CSI 300, and Hong Kong's Hang Seng indices fell. European markets were also lower in early trade.
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