Nasdaq tech stocks seen leading retreat ahead of CPI inflation reading

• Nasdaq 100 futures fell 0.85%, S&P 500 futures dropped 0.4%, while Dow futures were nearly flat, retreating from Monday's record highs when the S&P closed at 7,413 and Nasdaq finished at 26,274
• US crude futures jumped almost 3% above $101/barrel after Trump dismissed Iran's latest ceasefire proposal, keeping Treasury yields closely tied to Middle East developments and oil price movements
• Oxford Economics expects the Fed to hold rates higher due to AI buildout costs, energy price passthrough, and tariff effects, but projects enough easing for a rate cut in December 2026

Market Summary: Tech Stocks Retreat Ahead of Key Inflation Data

Market Overview:

US markets opened lower on Tuesday, May 12, 2026, with tech stocks leading the decline. Nasdaq 100 futures dropped 0.85%, S&P 500 futures fell 0.4%, and Dow Jones futures declined less than 0.1%. This follows Monday's session where the S&P closed at 7,413 (+0.2%), Nasdaq at 26,274 (+0.1%), and Dow at 49,704 (+95 points).

Key Market Driver:

Investors await April CPI inflation data due after the opening bell, along with a $42 billion 10-year Treasury note auction. Federal Reserve President Austan Goolsbee is also scheduled to speak.

Geopolitical Impact:

Oil prices surged nearly 3% to above $101 per barrel after President Trump declared the Iran ceasefire on "massive life support" and rejected Tehran's latest proposal. Treasury yields remain closely tied to Middle East developments and oil markets.

Global Markets:

European markets weakened with Frankfurt's DAX down 1% and London's FTSE 100 off 0.4%. Asian markets were mixed: Tokyo's Nikkei rose 0.5%, while South Korea's Kospi plunged 2.35% after a controversial "national dividend" proposal linked to AI industry profits.

Analyst Outlook:

Oxford Economics expects inflation to remain elevated due to AI buildout, energy costs, and tariff effects, but anticipates conditions will ease enough for the Fed to cut rates in December.

Individual Stocks:

• GameStop: Down 4% in pre-market after eBay rejected its acquisition bid
• On Holding: Fell 2% despite raising profit margin outlook
• Quantum Computing: Surged 24% after Q1 revenue of $3.7 million beat estimates