The major U.S. index futures are currently pointing to a lower open on Tuesday, with stocks likely to move to the downside after ending yesterday's choppy session modestly higher.
An extended surge by the price of crude oil may weigh on Wall Street amid concerns about a re-escalation of the Middle East conflict.
U.S. crude oil futures are spiking by more than 3 percent on the day after jumping by 2.8 percent during Monday's session.
The continued increase by the price of crude oil comes as the U.S. and Iran struggle to reach an agreement to end the war and reopen the critical Strait of Hormuz.
President Donald Trump later told reporters on Monday that the U.S.-Iran ceasefire is on "life support" amid the ongoing dispute, describing the state of the truce "unbelievably weak."
However, the futures regained some ground following the release of a Labor Department report showing consumer prices increased in line with economist estimates in the month of April.
The pace of consumer price growth slowed to 0.6 percent in April from 0.9 percent, with investors seemingly breathing a sigh of relief that the increase was not bigger.
After turning in a strong performance last week, stocks showed a lack of direction over the course of the trading session on Monday. The major averages spent the day bouncing back and forth across the unchanged line before eventually closing modestly higher.
The Dow rose 95.31 points or 0.2 percent to 49,704.47, the Nasdaq inched up 27.05 points or 0.1 percent to 26,274.13 and the S&P 500 edged up 13.91 points or 0.2 percent to 7,412.84.
Despite the lackluster performance on the day, the Nasdaq and S&P 500 ended the session at new record closing highs.
The choppy trading on Wall Street came as traders expressed some uncertainty about the near-term outlook for the markets following recent strength.
While traders generally remain optimistic about the future for the markets, uncertainty about the conflict in the Middle East continues to weigh on their minds.
Traders also continued to keep an eye on the price of crude oil, with U.S. crude oil futures jumping by more than 2 percent on the day.
Crude oil futures surged after President Donald Trump rejected Iran's response to a U.S. proposal to end the months-long war, calling it "totally unacceptable" in a post on Truth Social.
According to state media, Iran's counterproposal included demands for compensation over war damage and recognition of the Islamic Republic's sovereignty over the Strait of Hormuz.
However, U.S. markets have recently been able to shrug off concerns about the impact of the Middle East conflict amid upbeat earnings news.
Gold stocks moved sharply higher amid a modest increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index spiking by 3.7 percent.
The surge by the price of crude oil also contributed to significant strength among oil producer stocks, as reflected by the 2.6 percent jump by the Philadelphia Oil Service Index.
Semiconductor, oil service and networking stocks also saw considerable strength, while airline stocks moved sharply lower, dragging the NYSE Arca Airline Index down by 3.1 percent.
Retail, housing and banking stocks also saw notable weakness, offsetting the strength seen in the aforementioned sectors.
Commodity, Currency Markets
Crude oil futures are surging $3.50 to $101.57 a barrel jumping surging $2.65 to $98.07 a barrel on Monday. Meanwhile, after edging down $2 to $4,728.70 ounce in the previous session, gold futures are falling $24.50 to $4,704.20 an ounce.
On the currency front, the U.S. dollar is trading at 157.55 yen compared to the 157.16 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1746 compared to yesterday's $1.1782.
Asia
Asian stocks ended mostly lower on Tuesday as a recent tech-led rally lost steam and oil prices extended their surge amid fresh doubts over the U.S.-Iran ceasefire.
After U.S. President Donald Trump rejected Iran's latest peace proposal, Israel launched new air strikes targeting Tehran and expanded its military campaign to include attacks on Iran-backed Hezbollah militants in Lebanon.
Reports indicate that the Trump administration may consider military action against Iran due to growing frustration over deadlocked negotiations.
Trump told Fox News on Monday that he's looking at reviving a plan to escort ships through the Strait of Hormuz.
Investors also awaited cues from the release of U.S. CPI data for April and a crucial meeting between U Trump and his Chinese counterpart Xi Jinping in Beijing from May 13-15.
The dollar strengthened in Asian trading and bond yields rose, while gold dipped below $4,700 an ounce as investors priced out Federal Reserve rate cuts this year.
Japan's 10-year government bond yields reached a 29-year peak today as investors keenly awaited remarks from U.S. Treasury Secretary Scott Bessent, currently visiting Tokyo.
Brent crude futures climbed above $106 a barrel, extending gains from the previous session on concerns that the Strait of Hormuz may stay effectively closed for an extended period.
China's Shanghai Composite Index slipped 0.3 percent to 4,214.49 ahead of the upcoming high-level trade talks between the United States and China. Hong Kong's Hang Seng Index ended 0.2 percent lower at 26,347.91, giving up early gains.
Japanese markets ended higher despite rising oil prices and inflation fears. Investors shrugged off government data that showed Japanese household spending fell more than expected in Mary from a year earlier.
The Nikkei 225 Index climbed 0.5 percent to 62,742.57 after three days of losses. The broader Topix Index settled 0.8 percent higher at 3,872.90.
Furukawa Electric soared over 16 percent after its fiscal 2025 consolidated results exceeded earlier forecasts. Automaker Mazda Motor jumped 4.1 percent after it forecast significant growth in sales, operating income and net income for FY March 2027.
Seoul stocks ended sharply lower due to profit taking after a record-breaking run. The Kospi average tumbled 2.3 percent to 7,643.15, snapping a five-day winning streak.
Australian markets fell for a third consecutive session, with banks coming under selling pressure ahead of this year's federal budget.
The benchmark S&P/ASX 200 Index fell 0.4 percent to 8,670.70, while the broader All Ordinaries Index ended down 0.4 percent at 8,909.60.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index slumped 1 percent to close at 13,080.33, halting gains from the previous session.
Europe
European stocks traded lower on Tuesday as hopes for a U.S.-Iran peace deal diminished and data showed German inflation increased for the second consecutive month as a result of another rise in energy prices due to the Iran war.
U.S. President Donald Trump said the fragile ceasefire between Washinton and Tehran was on "massive life support," raising fresh doubts over the chances of a lasting truce.
German consumer price inflation rose to 2.9 percent in April from 2.7 percent in March, according to final data from Destatis. The rate came in line with the estimate published on April 29 and also hit the highest since December 2023.
While the German DAX Index is down by 1.2 percent, the French CAC 40 Index is down by 0.7 percent and the U.K.'s FTSE 100 Index is down by 0.4 percent.
German steelmaker Salzgitter soared 6 percent. The company lifted its fiscal 2026 earnings forecast after reporting turnaround results for the first quarter.
Technology group Jenoptik rallied 10 percent after reporting a 74 percent jump in its Q1 order intake.
Premium beauty retailer Douglas tumbled 3.7 percent after widening its second-quarter loss due to impairments.
Bayer gained 6.2 percent after reporting stronger first-quarter earnings, underpinned by a robust performance in its crop science unit.
Reinsurer Munich Re slumped 4.6 percent after saying it has investments of as much as €2.5 billion ($2.9 billion) in private credit.
Siemens Energy declined 1.6 percent despite hiking its FY26 outlook.
Imperial Brands rose 1.2 percent. The London-listed tobacco company maintained its annual outlook after reporting higher adjusted earnings and strong cash generation in the first half of 2026.
Vodafone dropped 3 percent after the telecommunications operator lost clients in its key German market last quarter.
Wizz Air Holdings fell nearly 2 percent. The budget airline said it expects to report breakeven to slightly positive earnings for its 2025/26 financial year.
U.S. Economic News
With energy prices surging, the Labor Department released a report on Tuesday showing consumer prices in the U.S. increased in line with economist estimates in the month of April.
The Labor Department said its consumer price index climbed by 0.6 percent in April after advancing by 0.9 percent in March. The growth matched expectations.
The report also said the annual rate of growth by consumer prices accelerated to 3.8 percent in April from 3.3 percent in March, which was also in line with estimates.
Excluding food and energy prices, the core consumer price index rose by 0.4 percent in April after inching up by 0.2 percent in March. Economists had expected core prices to increase by 0.3 percent.
The annual rate of growth by core consumer prices accelerated to 2.8 percent in April from 2.6 percent in March, coming in slightly above estimates for a 2.7 percent jump.
The Treasury Department is scheduled to announce the results of this month's auction of $42 billion worth of ten-year notes at 1 pm ET.
Also at 1 pm ET, Chicago Federal Reserve President Austan Goolsbee is due to participate in a moderated question-and-answer session before the Greater Rockford Chamber of Commerce.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.