U.S. equity index futures experienced a slight retreat as investors awaited April Consumer Price Index (CPI) data and continued to monitor developments in the Middle East. President Trump stated that the U.S.–Iran ceasefire was on “massive life support,” contributing to market caution. In the prior session, modest gains were observed, with the S&P 500 closing at 7,412, up 0.2%, and the Nasdaq 100 closing at 29,320, up 0.3%, both reaching fresh record highs. This rally was supported by notable strength in chipmakers. Treasury yields moved higher, with the 30-year yield not far off 5%. This increase was driven by rising oil prices, which reignited inflation concerns and lifted breakeven inflation rates. Market pricing, as indicated by CME's FedWatch tool, anticipates the Federal Reserve holding interest rates steady this year. However, a significant minority view suggests a near coin-toss likelihood of a hike around March of next year.
In the stock market, shares of Nvidia (NASDAQ: NVDA) ended higher, gaining 2%, as investors continued to pile into artificial intelligence (AI) and memory-related stocks. The broader semiconductor complex also saw gains, with Qualcomm (NASDAQ: QCOM) up 8.4%, Intel (NASDAQ: INTC) up 3.6%, Micron (NASDAQ: MU) up 6.5%, and Western Digital (NASDAQ: WDC) up 7.5% all enjoying sizable increases.
Tesla (NASDAQ: TSLA) shares closed higher, up 3.9%, extending its gains over the past month to over 26%. Sony advanced by 5.7% after announcing a joint venture with Taiwan Semiconductor Manufacturing Company.
Energy sector stocks traded higher as oil prices rose. Companies such as Valero Energy (+2.9%), Occidental Petroleum (+4%), Devon Energy (+2.5%), and ConocoPhillips (+2.2%) experienced increases.
Lumentum (NASDAQ: LMT) surged by 16.5% following news that the company will join the Nasdaq 100 index, replacing CoStar next week. This move signifies a significant upward revaluation for Lumentum.
Volatility was observed in shares of Moderna (NASDAQ: MRNA), which initially surged on headlines surrounding the hantavirus vaccine before finishing lower, down 2.7%.
Shares of Trade Desk (NASDAQ: TTD) experienced a tough session, falling sharply by 6.7% after HSBC downgraded the stock to 'reduce' from 'hold' and cut its price target. This downgrade indicates a more cautious outlook from the analyst firm.
Meme stock movers showed varied performance. Beyond Meat (-2.9%), GoPro (-3.7%), Krispy Kreme (-6.1%), Opendoor (-3.2%), AMC (-5.7%), BlackBerry (-2.6%), and GameStop (-4.6%) all declined. However, Nokia (+8.5%) and Avis (+3.7%) posted gains, indicating a mixed sentiment within this segment of the market.
Cryptocurrency-related stocks finished higher. Coinbase (+7.7%), MicroStrategy (+4.5%), Mara Holdings (+3.5%), Gemini Space Station (+4.4%), and Bullish (+0.9%) all saw positive movement. Circle Internet Group (+15.9%) rallied significantly, despite reporting mixed quarterly results. This broad upward trend in crypto stocks suggests renewed investor interest in the digital asset space.
Commodities saw mixed trends. Gold prices experienced an early retreat but remained above $4,700, holding onto recent gains. Traders were positioning themselves ahead of crucial inflation data and monitoring renewed U.S.-Iran tensions. Silver sharply outperformed gold, briefly breaching $87 and driving the gold/silver ratio below 55 for the first time since January. This performance suggests a stronger demand for silver relative to gold in the current market environment.
Oil prices, specifically West Texas Intermediate (WTI) crude oil, remained elevated, hovering above $96 as of this morning. The market is likely to continue experiencing volatility after President Trump stated that the U.S.–Iran ceasefire is on “massive life support” and rejected Tehran’s latest proposal. This sentiment keeps fears elevated that the Strait of Hormuz could remain disrupted for longer. The U.S. also announced fresh sanctions targeting Iran’s oil shipments to China, adding to supply concerns. Furthermore, the U.S. will loan energy companies 53.3 million barrels from the Strategic Petroleum Reserve, a move aimed at stabilizing supply.
In foreign exchange (FX) markets, the U.S. Dollar Index remained in the 97 handle as traders weighed renewed Middle East tensions and rising oil prices. The USD/JPY pair moved further into the 157s, indicating a strengthening dollar against the Japanese yen.
Kevin Warsh cleared another hurdle in the Senate, with his nomination moving forward. A vote is expected today on confirming him as a board member of the Federal Reserve. The final vote on the Fed chair is likely to follow tomorrow.
Central bank commentary revealed differing perspectives on inflation and monetary policy. European Central Bank (ECB) official Kocher noted that inflation risks are rising amid the Middle East conflict, suggesting there is no need to delay rate hikes should energy prices fail to improve swiftly. Conversely, De Guindos urged prudence on further tightening, citing weakening growth expectations and uncertainty surrounding the conflict. This divergence highlights the complex decision-making process for the ECB.
In the UK, Bank of England's Greene indicated that inflation risks are “entirely to the upside” and that policymakers should wait to assess how the U.S.-Iran conflict develops before deciding on any further rate adjustments. This suggests a cautious approach from the Bank of England, prioritizing stability.
The Bank of Japan’s April Summary of Opinions revealed that some policymakers argued for raising rates soon. One member specifically stated that it is “quite possible the BOJ will raise interest rates from the next meeting onward, even if the future course of the Middle East conflict remains unclear.” This indicates a growing sentiment within the BOJ for a shift towards tighter monetary policy.
Client sentiment data from Capital.com showed shifts in trader positioning. For indices, traders are following the trend in the S&P 500, with the majority buy bias increasing to 64% from 61% yesterday. Some traders are taking profits in the Dow 30, with the heavy long position decreasing to 67% from 69%. The Russell 2000 also saw a slight decrease in its long position, moving to 63% of traders long from 64%. The Nasdaq 100's majority sell bias fell back as short positions were tested, shifting to a slight sell of 52% from 56%. Elsewhere, sentiment shifted in the Nikkei 225, moving from a slight sell bias of 51% to a majority buy bias of 64% following a recent pullback.
In commodities, sentiment for gold showed a heavy buy but down a couple of notches, with 73% of traders long compared to 75% at the start of the week. Silver fell out of extreme buy sentiment following its surge, reaching 73% of traders long from 78%. Some traders took profits in WTI crude oil, leading to a decrease in its majority buy sentiment to 56% from 58%.
FX sentiment showed small changes across all reported pairs, suggesting a period of relative stability or consolidation in currency markets.
Economic data released provided a mixed picture. U.S. existing home sales for April increased by 0.2% month-over-month to 4.02 million units, slightly below the forecast of 4.05 million. This indicates a slight slowdown in the housing market.
In the UK, BRC's like-for-like retail sales for April unexpectedly contracted by 3.4% year-over-year, sharply missing the expected 0.8% growth. This suggests a weakening consumer environment in the UK.
Japanese household spending suffered a 2.9% year-over-year contraction in March, also worse than anticipated. This points to a slowdown in consumer demand in Japan.
Looking ahead, several key economic events and data releases are scheduled. The U.S. is set to release its April CPI data, alongside the NFIB business optimism index and Treasury budget figures. The American Petroleum Institute (API) will release its weekly energy inventory readings. Several Federal Open Market Committee (FOMC) members are scheduled to speak, and a 10-year Treasury auction is planned. A crucial Senate vote on Kevin Warsh's confirmation as a member of the Federal Reserve board is expected today, with the final vote on the Fed chair likely to follow tomorrow.
In Germany, CPI data and the ZEW economic sentiment index are due. Major companies such as Siemens Energy, Munich RE, and Bayer are scheduled to report earnings, providing insights into corporate performance.
Bitcoin hovers around $81,000 after briefly falling beneath this level. The digital currency is enjoying ongoing institutional ETF inflows and has, thus far, kept its price within its bull channel. A bigger pullback was observed for Ether, which briefly broke below $2,300, taking the Ethereum/Bitcoin ratio to a key support level.
Market movers included notable gains in chipmakers such as Intel (+3.62%) and Qualcomm (+8.42%), alongside Tesla (+3.89%) and Nvidia (+1.97%). Energy stocks also saw upward movement, with WTI Crude Oil futures trading at $101.16, up 3.15%. Treasury yields showed mixed signals, with the 30-year yield at 5.001% and the 10-year yield at 4.429%.
In commodities, Gold Futures were trading at $4,711.90, down 0.36%, while Silver Futures were down 1.29% at $84.843. Natural Gas Futures saw a slight increase of 0.45% to $2.923.
Among major indices, the S&P 500 was down 0.32% at 7,389.10, while the Dow Jones Industrial Average was up 0.19% at 49,704.47. The Nasdaq Composite saw a slight gain of 0.10% to 26,274.13.
In terms of specific company performance, Lumentum surged 16.5%, while Trade Desk fell 6.7%. Moderna experienced volatility, closing down 2.7%. Meme stocks showed mixed results, with Nokia up 8.5% and GameStop down 4.6%.
Cryptocurrency-related stocks like Coinbase (+7.7%) and MicroStrategy (+4.5%) finished higher. Circle Internet Group saw a significant rally of 15.9%.
Economic data highlighted a contraction in UK retail sales (-3.4%) and Japanese household spending (-2.9%), while U.S. existing home sales showed a slight increase of 0.2%.
Looking ahead, key events include the U.S. April CPI data, German CPI, and earnings reports from Siemens Energy, Munich RE, and Bayer. The Senate vote on Kevin Warsh's confirmation to the Federal Reserve board is also a significant event to watch.
This report is based on information available as of May 12, 2026, 02:43 AM.
