Tech Rally Pauses as Investors Brace for April PPI, Retail Sales, and Fed Clarity

US stock futures fell early Thursday as investors turned cautious ahead of a pivotal day featuring retail earnings, inflation data, and a speech by Federal Reserve Chair Jerome Powell. The pullback follows a sustained rally in technology stocks and a temporary easing of trade tensions between the US and China, now giving way to renewed economic uncertainty.

Highlights:

S&P 500 futures drop 0.5%, Dow futures fall 0.4%, Nasdaq futures slide 0.7%.
Walmart earnings and April retail sales to offer a read on consumer resilience.
Investors await April Producer Price Index (PPI) after a cooler CPI report.
Powell’s speech in Washington watched for rate guidance amid trade fallout.

Retail and Inflation Data in Focus as Tariff Uncertainty Looms

The US retail sector and broader economy will come under scrutiny Thursday with the release of April’s retail sales data and the Producer Price Index (PPI). These indicators follow a softer-than-expected Consumer Price Index (CPI) print earlier this week, which showed that inflationary pressure might be subsiding even as tariffs on Chinese imports take effect.

Investors are also eager to assess whether tariff-related disruptions are impacting US consumer behavior. Walmart’s quarterly earnings, expected before market open, will serve as a key barometer of retail health, particularly under volatile pricing conditions.

Highlights:

April CPI showed cooling inflation, suggesting easing price pressures.
PPI release to reveal wholesale price trends, a forward indicator for consumer inflation.
Walmart earnings viewed as critical gauge of consumer demand amid tariffs.

Jerome Powell’s Remarks Could Signal Fed’s Path Forward

All eyes will turn to Federal Reserve Chair Jerome Powell, who is scheduled to speak at a Washington conference later in the day. Markets hope for clarity on how the Fed interprets the mixed economic signals and the effects of President Trump’s escalating tariff policies, which have made monetary policymaking more complex.

Powell’s speech comes at a time when Fed officials have emphasized reliance on incoming data rather than forward guidance, particularly as inflation remains below the central bank’s 2% target.

Highlights:

Powell speech expected to address data-dependent policy outlook.
Fed officials tracking tariff-related distortions before taking policy action.
Market watchers hoping for rate clues amid trade-driven uncertainty.

Energy Markets Slump as Trump Signals Iran Deal Possible

In commodity markets, crude oil prices dropped nearly 4% after President Trump said the US is nearing a potential agreement with Iran on its nuclear program. A thaw in US-Iran relations would raise the prospect of increased oil supply hitting global markets, driving down prices.

Brent crude slipped below $64 per barrel, while West Texas Intermediate (WTI) dropped beneath $61. The sharp move reflects investor sensitivity to geopolitical headlines and ongoing efforts to rebalance supply-demand dynamics.

Highlights:

Brent crude falls 4% to under $64/barrel, WTI below $61.
Trump hints at Iran nuclear deal, raising supply concerns.
Energy stocks likely to remain volatile amid policy uncertainty.

Earnings Roundup: Cisco Rallies on AI Boost, CoreWeave Sinks

Corporate earnings remain a key driver of market sentiment. On Wednesday, Cisco Systems raised its full-year outlook, citing accelerating demand tied to AI infrastructure. Shares rose in premarket trading as investors cheered the company’s growth prospects.

Conversely, CoreWeave, also leaning heavily on AI, offered a bullish revenue outlook but saw its stock decline due to higher-than-expected capital expenditures. The mixed results reflect investor concerns over the cost intensity of scaling AI capabilities.

Later Thursday, results are expected from Alibaba (BABA), Applied Materials (AMAT), and Cava (CAVA), which could shape the next leg of market direction.

Highlights: