US stock futures showed a mixed picture on Tuesday as investors braced for a crucial inflation report that could determine whether the recent market rally has staying power. Dow Jones futures advanced 172 points, or 0.33%, while S&P 500 contracts gained 0.17%. In contrast, Nasdaq 100 futures declined 0.26%, reflecting lingering caution in the tech sector.
The cautious opening followed Monday's strong gains, when the S&P 500 climbed 2.35% and the Nasdaq Composite surged 2.74%. Falling oil prices provided some relief, but hawkish comments from Federal Reserve officials, uncertainty surrounding Nvidia, and fresh developments in the artificial intelligence space kept investors on edge.
Inflation data could challenge Wall Street's rebound
The October Consumer Price Index is scheduled for release at 8:30 am Eastern. Economists expect monthly headline inflation of 0.3% and core inflation of 0.2%. A hotter-than-expected reading could dampen hopes for a pause in rate hikes.
Federal Reserve Governor Christopher Waller indicated in a speech on Tuesday that he supports a quarter-point rate increase in December, even if inflation moderates. He also floated the possibility of a half-point move if core inflation reaches 0.3% or higher. Such comments underscore the Fed's data-dependent stance.
Oil's slide below $90 offers relief to stocks
Brent crude briefly dipped below $90 a barrel for the first time since August, before trading at $90.18, down 2.58%. West Texas Intermediate fell 2.43% to $84.74. The retreat followed President Donald Trump's suggestion that further military strikes against Iran were unlikely while negotiations progress. Brent has lost roughly 23% since its late-October peak, easing inflationary pressures.
Nvidia attempts a comeback after Huang investigation
Nvidia shares gained about 1.3% in pre-market trading after losing 4.27% on Monday, closing at $178.67. The decline followed an independent board investigation into reports that CEO Jensen Huang had been targeted by a foreign intelligence operation. In an official statement, Nvidia said it had no reason to believe company secrets or national security were compromised and reaffirmed confidence in Huang.
Anthropic's blockbuster IPO faces an unexpected setback
The Claude developer withdrew pricing information circulated to investment banks ahead of its anticipated stock market listing. The documents initially outlined a proposed sale of approximately 867 million shares at $70–$80 each, potentially valuing the offering at $69.3 billion. Anthropic subsequently told bankers the pricing details were inaccurate, according to reporting by The Information. A revised price range has not been confirmed.
CoreWeave earnings and SoftBank's $7 billion loss test AI confidence
CoreWeave shares rose approximately 2.4% before the bell ahead of its third-quarter earnings, scheduled after Tuesday's close. Investors will focus on data-centre spending, debt, and cash generation. Meanwhile, SoftBank reported a ¥1.1 trillion ($7 billion) quarterly net loss, compared with a ¥2.5 trillion profit a year earlier. Its results were hurt by losses linked to US AI data-centre investments and higher financing costs.
As the trading day unfolds, market participants will closely monitor the CPI release and corporate earnings for further direction. The interplay between inflation data, Fed policy expectations, and AI-related developments is likely to drive volatility in the near term.
This article is for informational purposes only and does not constitute financial advice.
