FX.co ★ US Futures Hold Pullback

US equity futures extended their decline after a hotter‑than‑expected April CPI report reinforced worries that rising energy costs could weigh directly and indirectly on corporate earnings. Futures on the S&P 500 and Nasdaq 100 fell as much as 1%, while Dow Jones Industrial Average contracts hovered near unchanged levels.

Headline US inflation accelerated to a three‑year high of 3.8%, overshooting forecasts and highlighting the role of higher fuel prices in broader price pressures. Against this backdrop, the Federal Reserve is now widely expected to keep rates on hold for the rest of the year, as policymakers weigh the risk of an inflation shock alongside recently strong labor‑market data.

The renewed inflation concerns stalled the recent rally in AI hyperscalers and major chipmakers. Tesla, Nvidia, Amazon, and Alphabet were all down more than 1% in pre‑market trading. In corporate news, telehealth provider Hims & Hers tumbled 15% pre‑market after its first‑quarter results fell short of expectations.