Stock market today: Dow, S&P 500, Nasdaq futures sink as techs slide, US-Iran truce teeters

A retreat in US stock futures picked up pace on Wednesday in the wait for the latest inflation reading, while renewed US-Iran military clashes cast doubt on the odds for peace negotiations.

Nasdaq 100 futures (NQ=F) led the pullback, down 1.7% as Tuesday’s sell-off in tech stocks deepened. S&P 500 futures (ES=F) sank 1.2%, while those on the Dow Jones Industrial Average (YM=F) fell around 1%.

Techs look set for another bruising as the rotation out of the AI trade continues, as concerns around OpenAI (OPAI.PVT) and Anthropic’s (ANTH.PVT) mega-IPOs build.

Focus is now on the May’s CPI report, which will add to the pressure on growth stocks if the consumer inflation reading comes in hot as expected.

The data, set for release at 8:30 a.m. ET, is forecast to show prices rose 4.2% since last May. That would be the hottest annual reading in over three years, and would likely boost bets on an interest-rate hike landing this year.

It should also provide insight into whether the protracted war with Iran might force the Federal Reserve to hike rates, as rising energy costs feed into higher prices.

Tensions between the US and Iran ramped back up, with the two sides trading strikes overnight after a US Apache helicopter was downed on Monday near the Strait of Hormuz. President Trump early Wednesday posted on social media that Iran has “taken too long” to negotiate and would have to “pay the price.” Oil prices gained after Trump’s post.

On Wednesday after the bell, Oracle (ORCL) is set to report its earnings results. Investors will pay attention to the details of the company’s cloud business, which counts OpenAI as a customer, amid fluctuations in the AI trade.

The main event of the week lands Friday, with the expected IPO of Elon Musk’s SpaceX (SPCX). The company’s debut is expected to mark the largest public offering in history.