US equity futures slipped ahead of the April CPI release, easing back from the record highs reached in the previous session as renewed worries over energy-driven inflation stalled the rally in AI-related stocks. Futures on the S&P 500 and Nasdaq 100 fell as much as 1%, while Dow Jones Industrial Average contracts hovered near unchanged levels.
Headline US inflation is expected to have climbed to its highest level in more than two years, with the conflict in the Middle East pushing up energy costs for both businesses and households. Against this backdrop, the Federal Reserve is widely seen as unlikely to deliver another rate cut this year, given the risk of an inflationary surprise and the backdrop of recently robust labor-market data.
Pre-market trading showed weakness across AI hyperscalers and major chipmakers, interrupting their strong gains earlier this month. Shares of Tesla, Nvidia, Amazon, and Alphabet were all down more than 1% before the opening bell. In corporate news, telehealth provider Hims & Hers sank 15% in pre-market trading after its first-quarter earnings came in below expectations.
