4:15pm: Stocks closed mixed
Stocks pulled back Tuesday as investors reacted to a hotter-than-expected inflation report that reinforced concerns interest rates could stay elevated well into 2026.
The Nasdaq led the decline, falling 0.7% to 26,088 as semiconductor and AI-related names reversed course after recent gains, while the S&P 500 slipped 0.2% to 7,401 following Monday’s record close.
The Dow Jones managed to outperform, edging up 0.1% to 49,761 as investors rotated into more defensive and dividend-paying sectors.
Treasury yields moved higher following the April CPI report, with the benchmark 10-year US Treasury yield climbing to around 4.5% as traders scaled back expectations for near-term rate cuts. Markets are now increasingly betting the Fed may not begin easing policy until late 2026.
Investors also looked ahead to earnings from Oklo, which is scheduled to report results after the closing bell.
3:40pm: Proactive news headlines
- Millennial Potash Corp (TSX-V:MLP, OTCQB:MLPNF, FRA:XOD) has launched its Phase 3 drilling campaign at the Banio potash project in Gabon to expand known mineralization beyond the current resource area.
- American Resources Corp (NASDAQ:AREC) said minority-owned ReElement Technologies has joined the Minerals Integrity & Resilience Alliance to help strengthen transparency and resilience across the critical minerals supply chain.
- 374Water Inc (NASDAQ:SCWO, FRA:8LL) announced the first commercial deployment of its mobile AirSCWO system for on-site waste destruction operations in Minnesota under a pilot program running through September 2026.
- Ocean Power Technologies Inc (NYSE-A:OPTT) said it has deployed three PowerBuoy systems off the California coast to support US Department of Homeland Security maritime surveillance operations with real-time offshore data transmission.
- 1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) reported drill results from its True North Gold Project in Manitoba showing gold mineralization extending beyond the boundaries of the project’s 2024 resource estimate.
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) signed a three-year lease for a new facility in Brisbane as part of its plans to expand graphene production capacity globally.
- Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) announced plans to raise up to C$900,000 through a non-brokered financing to support its exploration activities in Saskatchewan’s Athabasca Basin.
- AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) said it remains on track to launch a Phase 3 trial in 2026 for its treatment-resistant depression therapy while projecting its cash reserves will fund operations into 2029.
- Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) said its Mexican subsidiary has signed agreements to acquire interests in 29 mineral concessions near its Cerro Caliche project in a move aimed at expanding a potentially larger epithermal gold system.
- BioHarvest Sciences Inc (NASDAQ:BHST, FRA:8MV0) secured a $1.2 million Stage 2 contract to develop a rare fragrance compound for the global scent industry as it expands into high-value plant-based ingredients.
- Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF, FRA:1SS) launched the Krafty Labs AI Event Marketplace, a platform designed to help event organizers deploy experiential activations with integrated analytics across live and virtual events.
- NextSource Materials Inc. (TSX:NEXT, OTCQB:NSRCF) approved a final investment decision for Phase 1 of its Battery Anode Facility in Abu Dhabi, advancing its strategy to build a vertically integrated anode materials business.
- Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF, FRA:T2X) appointed former Harmony Gold chief executive Bernard Swanepoel to its board as the company prepares for its next phase of growth.
2:45pm: Market movers
- Rigetti Computing reported first-quarter results that topped analyst expectations, with revenue surging nearly 199% year-over-year to $4.4 million as the company advanced its superconducting quantum systems and chiplet-based architecture.
- AST SpaceMobile reported weaker-than-expected first-quarter 2026 results, posting a wider quarterly loss and missing revenue estimates, which sent shares down about 14%.
- Hims & Hers reported first-quarter results that fell short of expectations, with a surprise net loss of $92.1 million and softer revenue performance driving shares down nearly 14%.
- BioHarvest Sciences secured a $1.2 million Stage 2 contract from a UAE-based investment group to develop a rare fragrance compound, expanding its presence in the global fragrance market.
- eBay rejected a $56 billion takeover proposal from GameStop, citing concerns about the bid’s credibility, financing and governance risks tied to a potential merger.
- On Holding reported record first-quarter sales and raised its profit margin outlook after strong growth in Asia and apparel helped quarterly revenue surpass 800 million Swiss francs for the first time.
1:10pm: Walsh confirmed as governor
The US Senate voted 51-45 on Tuesday to confirm Kevin Warsh as a governor on the Federal Reserve Board, clearing the first hurdle in a two-step process that would ultimately make him the next chair of the central bank.
Lawmakers then quickly moved to limit debate on Warsh’s nomination for Fed chair, paving the way for a final confirmation vote on Wednesday, two days before current Chair Jerome Powell’s term is set to expire.
Warsh is taking over the board seat previously held by Stephen Miran.
The position Warsh is filling is the only Fed board seat expected to open up during the remainder of President Donald Trump’s term. Meanwhile, Powell has chosen to stay on the Fed board for now, departing from the typical practice of outgoing chairs leaving the central bank altogether. His term as a Fed governor runs through January 2028.
12:05pm: Fed at standstill after hot CPI
US consumer prices climbed more than expected in April, reigniting fears that persistent inflation will keep the Federal Reserve sidelined well into next year and potentially force its hand toward rate hikes.
Bank of America echoed that caution, flagging core services ex-housing at 0.5% month-on-month as the key concern, led by airfares, lodging, and other personal services. While core goods were roughly flat, suggesting tariff effects may be fading, the bank sees rising risks that core PCE could settle in the 2.5% to 3% range even after those effects roll off. "This would preclude additional rate cuts,” analysts wrote.
“We remain comfortable with our view that the Fed will be on hold until 2H 2027. Markets are even starting to price hikes. In our view, the u-rate would have to drop to/below 4% for hikes to be on the table. We are still some ways away from this outcome.”
The report also arrives at a politically charged moment, with incoming Fed chair Kevin Warsh expected to take office imminently. Nigel Green, CEO of deVere Group, warned the data has sharply curtailed Warsh's room to manoeuvre before he even begins. "This CPI print has boxed the next Fed chair in before he even sits down," Green said. "Kevin Warsh wants room to reduce rates, but the inflation data simply does not give him that space without credibility risk."
10:55am: April inflation accelerates
Chris Zaccarelli of Northlight Asset Management said April inflation accelerated as the Iran conflict and the closure of the Strait of Hormuz pushed energy costs higher, driving headline CPI up 0.6% month-over-month.
Core CPI also rose more than expected, increasing 0.4% versus forecasts for 0.3%, signaling broader inflation pressures beyond energy.
"Given that inflation is heading in the wrong direction and the labor market is holding up, it’s very unlikely that the Fed will be able to lower interest rates any time soon and it’s possible that we may start pricing in rate hikes for next year," Zaccarelli said.
"The stock market has rallied an impressive 16.9% since the March lows on much better-than-expected earnings, but at best the Fed is on hold for an increasingly long period of time and at worst the next move from the Fed may be a rate hike (albeit not until next year).
"We don’t believe the market needs rate cuts to keep climbing, but earnings will need to keep doing a lot of the heavy lifting as multiple expansion isn’t in the cards right now."
10am: Nasdaq opens lowest as semiconductor and techn stocks sold
Wall Street has joined in the Tuesday selling mood, led by the Nasdaq, down 0.85%.
The Dow Jones has opened 289 points in the red and the S&P 500 lost 42 points, both down 0.6%.
Biggest fallers on the Dow are Salesforce, Goldman Sachs, Caterpillar, Amazon, Microsoft and JPMorgan Chase - all down 1.8%-1.2%.
Nvidia and Visa are the only ones up more than 1%.
On the Nasdaq 100, the biggest fallers are semiconductor and technology stocks, led by Qualcomm, Monolithic Power Systems, Applied Materials, Micron Technology, Lam Research, KLA Corporation, NXP Semiconductors, Western Digital, ASML Holding, Strategy, PDD Holdings and Intel, down between 5.5% and 2%.
8.45am: US CPI rises to three-year high
US inflation last month was the highest in three years, due to rising energy, housing and food prices.
The US consumer price index was up 3.8% year on year in April, up from 3.26% the month before.
Month-on-month, CPI increased 0.6%, easing from the 0.9% monthly CPI reading in March.
Core CPI, which exclude food and energy, rose to 2.8% from 2.6%, while monthly core CPI climbed to 0.4%, the most in over a year, and overshooting market expectations of a 0.3% increase.
After the inflation data, stock futures have softened slightly as investors weighed the implications for interest rates and Treasury yields.
Nasdaq futures are now pointing to a 0.95% fall, with the S&P 500 down 0.43% and Dow futures still only just below flat.
8.15am: Nasdaq expected to lead losses
US stocks were set to open lower on Tuesday, with technology shares leading declines ahead of closely watched inflation data and another busy day for bond markets.
Nasdaq 100 futures were down 0.85%, with S&P 500 0.4% lower and Dow Jones futures less than 0.1% in the red.
This follows the Wall Street indices pushing to fresh record highs at the start of the week, when the S&P closed up 0.2% at 7,413 and the Nasdaq added 0.1% to finish at 26,274. The Dow rose 95 points to 49,704.
Investors are braced for April consumer price inflation figures due shortly after the opening bell, with markets also watching a $42 billion auction of 10-year Treasury notes later in the session.
The Treasury’s monthly budget statement and comments from Federal Reserve President Austan Goolsbee are also due.
Oil prices climbed again after Donald Trump said the Iran ceasefire was on “massive life support” and dismissed Tehran’s latest proposal as “a piece of garbage”. US crude futures rose almost 3% to above $101 a barrel.
European markets were weaker, with Frankfurt’s DAX down 1% and London’s FTSE 100 off 0.4%. In Asia, Tokyo’s Nikkei rose 0.5%, while South Korea’s Kospi fell 2.35% after a government proposal to introduce a “national dividend” linked to AI industry profits unsettled investors.
Analysts at Oxford Economics said Treasury yields remained closely tied to developments in the Middle East and oil markets, with investors balancing inflation risks against the possibility of Federal Reserve rate cuts later this year.
"The struggle for direction is likely to continue as long as negotiations between the US and Iran remain in limbo, with rates still tethered to the war’s path," said analyst John Canavan.
"A larger increase in oil prices is possible if the war heats up again, but a more credible move to reopen the Strait of Hormuz would likely ignite a front-end-led bull steepening trade as markets begin to price in further Fed rate cuts.
"We expect the AI buildout, the passthrough of energy cost increases to other consumer prices, and lingering tariff effects to keep inflation higher this year, but the outlook should ease enough for the Fed to cut rates in December."
Among individual stocks, GameStop was down 4% in pre-market trading after its bid for eBay was rejected as “neither credible nor attractive”.
On Holding jogged 2% lower despite the Swiss sportswear brand, which is backed by tennis legend Roger Federer, reporting record first-quarter sales and raising its profit margin outlook.
Quantum Computing soared 24% after first-quarter revenue of $3.7 million beat the Street's estimate.