The major U.S. index futures are currently pointing to a mixed open on Wednesday, with the major averages likely to move in opposite directions in early trading.
The Nasdaq may benefit from strength among tech stocks, as Nvidia (NVDA) may help lead an early advance by semiconductor stocks.
Shares of Nvidia are jumping by 1.6 percent in pre-market trading after CEO Jensen Huang was a last-minute addition to President Donald Trump's trip to China to meet Chinese President Xi Jinping.
However, buying interest outside of the tech sector is likely to be subdued following the release of a Labor Department report showing producer prices in the U.S. shot up by much more than expected in the month of April.
The Labor Department said its producer price index for final demand jumped by 1.4 percent in April after climbing by an upwardly revised 0.7 percent in March.
Economists had expected producer prices to rise by 0.5 percent, matching the increase originally reported for the previous month.
The report also said the annual rate of growth by consumer prices spiked to 6.0 percent in April from 4.3 percent in March, coming in well above economist estimates for a 4.9 percent surge.
After moving sharply lower in morning trading on Tuesday, stocks regained ground over the course of the session. The major averages climbed well off their worst levels of the day, with the Dow reaching positive territory.
The tech-heavy Nasdaq staged a notable recovery attempt after tumbling by as much as 2 percent but still ended the day down 185.92 points or 0.7 percent at 26,088.20.
The S&P 500 also slipped 11.88 points or 0.2 percent to 7,400.96, while the narrower Dow inched up 56.09 points or 0.1 percent to 49,760.56.
An extended surge by the price of crude oil contributed to the early sell-off on Wall Street, with U.S. crude oil futures soaring by more than 4 percent and jumping back above $100 a barrel.
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 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."
The weakness on Wall Street also came following the release of a report from the Labor Department showing the fastest annual rate of consumer price growth since May 2023.
The report said the annual rate of growth by consumer prices accelerated to 3.8 percent in April from 3.3 percent in March, reflecting sharply higher energy prices.
Selling pressure waned over the course of the session, however, as U.S. stocks have recently been able to shrug off concerns about the impact of the Middle East conflict amid upbeat earnings news.
"Given that inflation is heading in the wrong direction and the labor market is holding up, it's very unlikely that the Fed will be able to lower interest rates any time soon and it's possible that we may start pricing in rate hikes for next year," said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.
He added, "We don't believe the market needs rate cuts to keep climbing, but earnings will need to keep doing a lot of the heavy lifting as multiple expansion isn't in the cards right now."
Computer hardware and semiconductor stocks saw significant weakness on the day, contributing to the pullback by the tech-heavy Nasdaq.
Reflecting the weakness in the sectors, the NYSE Arca Computer Hardware Index plunged by 3.6 percent and the Philadelphia Semiconductor Index tumbled by 3 percent.
Considerable weakness was also visible among airline stocks, as reflected by the 2 percent slump by the NYSE Arca Airline Index.
Networking, steel and software stocks also saw notable weakness, while oil service stocks surged along with the price of crude oil, driving the Philadelphia Oil Service Index up by 2.2 percent.
Healthcare, biotechnology and pharmaceutical stocks also turned in strong performances, helping limit the downside for the broader markets.
Commodity, Currency Markets
Crude oil futures are inching up $0.03 to $102.21 a barrel after soaring $4.11 to $102.18 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,695, up $8.30 compared to the previous session's close of $4,686.70. On Tuesday, gold slumped $42.
On the currency front, the U.S. dollar is trading at 157.84 yen compared to the 157.61 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1704 compared to yesterday's $1.1737.
Asia
Asian stocks turned in a mixed performance on Wednesday as strong momentum in technology stocks helped investors look past concerns over rising U.S. inflation and the Middle East tensions.
The dollar was firm against major currencies, while gold was subdued a tad above $4,700 an ounce as investors reassessed the path for interest rates. Brent crude futures traded nearly 1 percent lower below $107 a barrel, snapping a three-day rally.
China's Shanghai Composite Index climbed 0.7 percent to 4,242.57 ahead of the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, with Taiwan, tariffs and the Strait of Hormuz on the agenda.
Hong Kong's Hang Seng finished 0.2 percent higher at 26,388.44 after a choppy session.
Japanese markets rose notably as the U.S. Treasury Secretary praised Japan's economic resilience and touted coordination with Japan on tackling excessively volatile currency moves.
The Nikkei 225 Index advanced 0.8 percent to 63,272.11, surpassing the 63,000 mark for the first time and setting a new record high, led by trading companies and financial stocks.
The broader Topix Index closed 1.2 percent higher at 3,919.48. The yen briefly strengthened after authorities signaled support for yen intervention.
Seoul stocks rebounded after an early sell-off. The Kospi surged 2.6 percent to 7,844.01, closing at a fresh peak on renewed optimism around artificial intelligence.
Samsung Electronics rose 1.8 percent despite failed wage talks with its union. The stock reversed early losses after officials signaled government support for negotiations aimed at preventing industrial action.
Australian markets ended lower as government bond yields rose on expectations that borrowing costs may stay elevated for longer. The benchmark S&P/ASX 200 Index dropped 0.5 percent to 8,630.40, while the broader All Ordinaries Index settled 0.3 percent lower at 8,880.70.
Banks ANZ, Westpac and NAB fell 2-3 percent in reaction to proposed housing tax changes in the federal government's budget.
Commonwealth Bank of Australia slumped 10.4 percent as the country's largest mortgage lender set aside another AU$200 million for macro risks.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index slipped 0.1 percent to close at 13,063.06, extending losses from the previous session on concerns that the fragile U.S.-Iran ceasefire may collapse.
Europe
European stocks are turning in a mixed performance during trading on Wednesday, with earnings and a slew of economic data in focus.
As Iran peace deal hopes fade and inflation concerns mount, traders looked ahead to the high-stakes meeting in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping for direction.
In economic news, French consumer price inflation rose to 2.2 percent in April, in line with the flash estimate and up from 1.7 percent in March, final data from the statistical office INSEE showed.
This was the fastest increase since July 2024, when inflation reached 2.3 percent. EU harmonized inflation accelerated to 2.5 percent in April from 2.0 percent in the prior month.
Separate data revealed the French unemployment rate unexpectedly rose to 8.1 percent in the first quarter, marking the highest since the first quarter of 2021.
Elsewhere, Destatis reported that German wholesale prices increased 6.3 percent on a yearly basis in April following March's 4.1 percent increase, as the U.S.-Iran warn lifted energy and raw material prices. The latest inflation rate was the highest since February 2023.
Eurostat confirmed that the Eurozone economy grew by 0.1 percent in the first quarter of 2026 compared to the previous quarter.
While the French CAC 40 Index is down by 0.4 percent, the U.K.'s FTSE 100 Index is just above the unchanged line and the German DAX Index is up by 0.6 percent.
German insurer Allianz has advanced after reporting a record profit for the first quarter, lifted by the sale of stakes in joint ventures in India.
Utility giant E.ON has also moved notably higher a day after announcing its planned acquisition of U.K. energy supplier OVO.
Deutsche Telekom, Europe's biggest phone carrier, has also moved to the upside after raising its full-year guidance.
Zurich Insurance, Switzerland's largest insurer, has also rallied after it reported growth in premiums across all segments.
Dutch bank ABN AMRO has also moved sharply higher after it reported first quarter profits above market expectations.
French steel tubes maker Vallourec has also soared after reporting impressive first quarter results.
Train maker Alstom has also surged after reporting a record order intake for the second half of fiscal year 2025/2026.
On the other hand, U.K. housebuilder Vistry has plummeted after slashing its full-year pre-tax profit guidance.
U.S. Economic News
Following yesterday's consumer price inflation data, the Labor Department released a separate report on Wednesday showing producer prices in the U.S. shot up by much more than expected in the month of April.
At 10:30 am ET, the Energy Information Administration is scheduled to release its report on oil inventories in the week ended May 8th. Crude oil inventories are expected to decrease by 1.6 million barrels.
Boston Federal Reserve President Susan Collins is due to deliver remarks and participate in a fireside chat before the Boston Economic Club at 11:30 am ET.
At 1 pm ET, the Treasury Department is scheduled to announce the results of this month's auction of $25 billion worth of thirty-year bonds.
Minneapolis Federal Reserve President Neel Kashkari is due to participate in a moderated discussion hosted by the St. Paul Area Chamber at 1:15 pm ET.
At 7 pm ET, Dallas Federal Reserve President Lorie Logan is scheduled to participate in a moderated conversation on the energy sector before a "Global Perspectives" event.
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.