U.S. equity futures jumped to a new record high Tuesday after core consumer inflation came in below expectations, easing worries about stubborn price pressures.
S&P 500 futures briefly climbed to 7,030, up about 0.2%, while Nasdaq futures also rose roughly 0.2%. The move reversed earlier losses as investors digested geopolitical risks and the start of earnings season.
The rally followed the release of core CPI, which printed below forecasts. The data strengthened hopes that inflation is cooling enough to keep the Federal Reserve on a steady policy path.
Markets had opened weaker after President Donald Trump announced a 25% tariff on any country doing business with Iran, raising concerns about trade disruptions and higher energy costs. Oil prices climbed, pushing WTI crude back above $60 a barrel for the first time since November.
Bond yields moved slightly higher, with the 10‑year Treasury yield rising about 2 basis points. The U.S. dollar strengthened, led by a sharp rally in USD/JPY, which climbed to 159, the highest level since July 2024.
In premarket trading, Big Tech stocks were mixed. Alphabet gained, while Microsoft and Apple edged lower. Financial and energy stocks led cyclical sectors, while utilities outperformed among defensive names.
Some individual stocks moved sharply. Delta Air Lines fell about 5% after issuing a weaker‑than‑expected profit outlook. L3Harris Technologies surged roughly 13% after the Pentagon backed its missile business with a $1 billion investment.
The inflation data came as earnings season begins and as investors watch the Federal Reserve closely. Fed officials said policy remains well positioned to bring inflation back toward the 2% target.
With inflation showing signs of easing, investors are now focused on whether economic data will allow the rally to continue without forcing the Fed to tighten further.
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