US Stocks Set for Lower Open After Hotter-Than-Expected CPI Hits 4.2%; Tech Jitters Mount Ahead of SpaceX IPO and Oracle Earnings
US stock futures are pointing lower Wednesday morning after May CPI data showed the annual inflation rate jumping to 4.2% — the highest pace in more than three years — stoking fresh worries about sticky prices, higher-for-longer rates, and the sustainability of the AI-fueled rally.
- E-Mini S&P 500 down 0.73% at $7339.00
- E-Mini Nasdaq 100 also weaker
- Cboe Volatility Index
$VIX surging 8.9% to 21.64 as the fear gauge climbs
The
$SPX closed Tuesday at 7386.65, down 0.26% on the day. Markets are now on edge as hotter inflation data adds to existing angst over the massive SpaceX IPO calendar and ongoing profit-taking in big-tech names.
Oil prices are pushing higher after President Trump issued fresh tough talk on Iran, raising supply disruption fears through the Strait of Hormuz.
- WTI Crude up 1.73% near $89.73
- Brent Crude up 1.36% at $92.69
Treasury yields are ticking higher with the 10-year at 4.527% and the 2-year at 4.127%. The US Dollar Index
$DXY is holding near 99.95.
Gold and silver are getting hammered, both sliding to 2026 lows as real yields rise and risk appetite fades.
- Gold Continuous Contract down 2.51% near $4179
- Silver down 0.82% at $64.70
$BTCUSD is also softer, last trading around $61,634, down 0.66% as crypto sentiment tracks the broader risk-off tone.
In stocks, the tech selloff is broadening.
Amazon.com $AMZN shares are pressuring the Dow Jones Transportation Average after the company said it will expand its trucking services to third-party customers.
- FedEx shares down more than 6% in premarket
- Old Dominion Freight Line down 5.6%
- XPO Inc.
$XPO down 4.1%
- iShares Transportation ETF
$IYT down 2.2%
South Korea’s Kospi is getting hit again, falling 4.5% in Wednesday’s session amid ongoing chip sector volatility.
- Samsung Electronics down 6.1%
- SK Hynix down 7.5%
-
$MU also weaker in US trading
Oracle
$ORCL results are due after the bell and will be closely watched after the stock’s big run on AI hype. Investors want to see if cloud and AI infrastructure revenue can justify current valuations.
Other notable themes:
- Apollo’s Torsten Slok highlighting that single-stock risk (measured by options) has hit record highs due to extreme tech concentration.
- Bank of America reiterating its short-euro call, targeting EUR/USD as low as 1.13 this summer.
- UK-listed Scottish Mortgage Investment Trust, with heavy SpaceX exposure, continuing to feel the pressure from IPO uncertainty.
The hotter CPI reading is being called a “toll booth” for the entire market, with every major risk factor — rates, dollar, gold, bitcoin, and the looming IPO wave — now pointing toward the same exit. Analysts warn this environment could prolong the recent tech pullback even as some see eventual relief once the SpaceX IPO dust settles.
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