S&P 500, Nasdaq 100 Futures Drop As April Inflation Runs Hotter Than Expected— Zoominfo, Gitlab In Focus (UPDATED)

(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.

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.

Read Also: Bumble Kills The Swipe To Help ‘Exhausted’ And ‘Fatigued’ Singles, CEO Confirms

Stocks In Focus

Gitlab

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

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.

Read Also: AMD Surges Nearly 80% Since Rep. Gil Cisneros’s Perfectly Timed Pre-Earnings Bet

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.

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 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.

Don’t Miss:

Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

IRA Financial

Self-directed investors looking to take greater control of their retirement savings may consider IRA Financial. The platform enables you to use a self-directed IRA or Solo 401(k) to invest in alternative assets such as real estate, private equity, or even crypto. This flexibility empowers retirement savers to go beyond traditional stocks and bonds, building diversified portfolios that align with their long-term wealth strategies.

Moomoo Idle Cash

Moomoo isn’t just for trading — it’s also one of the most attractive places to park cash. New users can earn a promotional 8.1% APY on uninvested cash, combining a 3.85% base rate with a 4.25% booster once activated. On top of that, eligible new users can also score up to $1,000 in free Nvidia stock—but the real draw here is the ability to earn bank-beating interest rates without having to move into riskier assets.

American Hartford Gold

For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It’s a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.

Photo courtesy: Shutterstock

Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.