
U.S. stock futures moved slightly higher early Wednesday as investors prepared for another key inflation report, the Producer Price Index, after a higher than expected CPI reading yesterday. S&P 500 and Nasdaq futures posted modest gains, while Dow futures were mostly flat. In Tuesday’s session, the S&P 500 and Nasdaq pulled back from record highs as technology stocks weakened and oil prices climbed. Rising geopolitical tensions supported higher oil prices and increased inflation concerns.
Despite the recent pullback in tech stocks, the AI-driven investment theme continues to support broader market optimism, with investors increasingly looking at opportunities tied to energy infrastructure and AI-related capital spending beyond the technology sector.
Investors are now focused on the upcoming PPI report, which could provide further clues about inflation trends and future Federal Reserve policy.
U.S. inflation rose faster than expected in April, increasing concerns that higher energy prices and broader cost pressures could keep inflation elevated for longer.
The Consumer Price Index rose 0.6% in April and 3.8% annually, slightly above forecasts and marking the highest yearly inflation rate since May 2023. Core inflation, which excludes food and energy, rose 0.4% monthly and 2.8% annually, remaining well above the Federal Reserve’s 2% target.
Copper prices surged toward record highs. The metal is now trading at $6.70 per pound. The rally is being driven by tightening global supply, recovering Chinese demand, and strong investor optimism linked to the AI boom, as copper remains essential for electrical wiring and infrastructure.
Supply concerns have also intensified due to disruptions at major copper mines and shortages of sulfur used in copper production, particularly from the Middle East.
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