Live Nasdaq Composite: Markets Retreat as Inflation Bites in High-Oil Economy

This article will be updated throughout the day, so check back often for more daily updates.

The markets came out of the gate under pressure, including tech stocks, as today’s CPI reading for April came in hotter than expected. The three major indices, including the Nasdaq Composite, are keeping the losses in check as of early morning trading.

Consumer prices climbed 3.8% year-over-year, the steepest rise in three years, fueled largely by surging energy costs linked to the war with Iran. Core CPI rose 2.8%, edging past the 2.7% forecast. Energy prices surged 18% annually, with gasoline up 28% and fuel oil jumping 54%. Today WTI Crude oil is hovering back above $100/barrel.

“The American economy has entered a new chapter where inflation appears to have stepped up,” says Joseph Brusuelas, chief economist at RSM cited by the WSJ. He predicts the headline rate moving to 4% later this year. “Median American families are going to find it very challenging to adjust going into the second half of the year.”

U.S. yields climbed Tuesday as investors digested the hotter-than-expected inflation print, with consumer prices hitting their highest level in nearly three years. The 10-year yield, the go-to benchmark for mortgages, auto loans, and credit card rates, edged up 3 basis points to 4.443%. The 2-year yield, which shadows Fed rate expectations, rose more than 4 basis points to 3.989%, while the 30-year bond ticked up nearly 2 basis points to settle at 5.011%.

Here’s a look at where things stand as of morning trading:

Dow Jones Industrial Average: 49,529 Down 0.60%
Nasdaq Composite: 29,244 Down 0.66%
S&P 500: 7,405 Down 0.43%

Market Movers

Advanced Micro Devices (Nasdaq: AMD) CEO Lisa Su is calling for 46% year-over-year revenue growth next quarter, and if history is any guide, that number could end up being conservative. AMD has consistently topped its own guidance in recent quarters.

Wells Fargo has bumped its price target on Nvidia (Nasdaq: NVDA) to $315, up from $265, while holding its Overweight rating ahead of the company’s earnings results. Analysts touted the setup going into Q1 and are lifting estimates off an updated model centered on expanded GB200 capacity.

The CME Group is gearing up to introduce “compute futures market later this year” and is awaiting the regulatory green light.

No Deal: eBay has shot down GameStop′s (NYSE: GME) $56-per-share takeover bid, according to the WSJ, deciding, the offer was “neither credible nor attractive.”