Stock Market Update

Equity indices point to a lower opening this morning amid a surge in oil prices as investors await the April CPI report (Briefing.com consensus 0.6%).

Stocks are coming off a modestly higher session that saw the S&P 500 and Nasdaq Composite reach fresh record highs, as continued strength across semiconductor and AI-related names outweighed escalating tensions between the U.S. and Iran. CNN reports that President Trump is seriously considering resuming combat operations in Iran due to recent negotiations falling apart. Additionally, The Wall Street Journal reports that the UAE has secretly been conducting attacks on Iran.

Crude oil is currently up $3.39 (+3.5%) to $101.46 per barrel.

The 8:30 a.m. release of the April CPI report will be closely watched for signs that higher oil prices are beginning to exert broader inflationary pressure across the economy.

Elsewhere on the economic data front, the NFIB Small Business Optimism Index for April checked in at 95.9 (Briefing.com consensus 96.1), up from the prior level of 95.8.

Earnings reports continue to trickle in, though at a much slower pace than in recent weeks now that the bulk of the S&P 500 has reported results.

In corporate news:

• eBay (EBAY 107.50, -0.63, -0.6%) rejected the unsolicited acquisition proposal from GameStop (GME 22.48, -0.69, -3.0%).
• Hims & Hers Health (HIMS 25.96, -4.19, -14.4%) missed revenue expectations and guided Q2 and FY26 revenues above consensus.
• Qnity Electronics (Q 157.50, +4.26, +2.8%) beat EPS expectations by $0.16, beat revenue expectations, and raised its FY26 guidance.
• Wendy's (WEN 7.95, +1.19, +17.60%) is higher in the premarket after Financial Times reported Trian Fund Management is considering taking the company private.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly lower showing on Tuesday with South Korea's Kospi (-2.3%) hitting another record before reversing while Japan's Nikkei (+0.5%) settled at a fresh record high. Japan's Nikkei: +0.5%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.3%, India's Sensex: -1.9%, South Korea's Kospi: -2.3%, Australia's ASX All Ordinaries: -0.4%.

In news:

• South Korea's policy chief said that a dividend should be paid to citizens from taxes on AI profits.
• The Bank of Japan's Summary of Opinions from the April meeting showed that most policymakers remain open to a hike, but the timing of the next increase has become more uncertain.
• Alphabet will sell yen-denominated bonds with different tenors in multiple tranches.
• Treasury Secretary Bessent met with top Japanese officials today, repeating that excess volatility in currency markets is undesirable.

In economic data:

• Japan's March Household Spending -1.3% m/m (expected 0.6%; last 1.5%); -2.9% yr/yr (expected -1.4%; last -1.8%). March Leading Index 114.5 (expected 114.4; last 113.2) and Coincident Indicator 0.3% m/m (last -1.7%)
• Australia's April NAB Business Survey 3 (last 6) and NAB Business Confidence -24 (last -29)
• India's April CPI 3.48% yr/yr (expected 3.80%; last 3.40%)

Major European indices trade in the red with the U.K.'s FTSE (-0.4%) staying a bit ahead of other markets. STOXX Europe 600: -0.7%, Germany's DAX: -1.1%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.6%, Italy's FTSE MIB: -0.7%, Spain's IBEX 35: -1.0%. 

In news:

• British Prime Minister Starmer has repeated that he has no intention to quit even though more than 81 Labour MPs and six cabinet ministers have made public calls for his resignation.
• Gilts underperformed in overnight trade, sending the 10-yr yield toward 5.35%, a level not seen since July 2008, amid speculation about looser fiscal policy after an eventual leadership change.
• European Central Bank policymaker Nagel repeated that the base scenario calls for two rate hikes from the central bank.

In economic data:

• Eurozone's May ZEW Economic Sentiment -9.1 (expected -21.6; last -20.4)
• Germany's April CPI 0.6% m/m, as expected (last 1.1%); 2.9% yr/yr, as expected (last 2.7%). May ZEW Economic Sentiment -10.2 (expected -19.2; last -17.2) and ZEW Current Conditions -77.8 (expected -77.5; last -73.7)
• Italy's March Industrial Production 0.7% m/m (expected 0.2%; last 0.2%); 1.5% yr/yr (last 0.4%)
• Swiss April PPI 0.8% m/m (expected 0.4%; last 0.2%); -2.0% yr/yr (last -2.7%)