Stock Market Update

Equity futures point to a lower open this morning as investors react to the April CPI report and monitor rising oil prices. Tech stocks, and in particular semiconductor names, are lower in the premarket after pacing yesterday's gains that resulted in fresh record highs for the S&P 500 and Nasdaq Composite.

Total CPI increased 0.6% month-over-month in April, as expected, following a 0.9% increase in March. That left total CPI up 3.8% year-over-year versus 3.3% in March. Core CPI, which excludes food and energy, jumped 0.4% month-over-month (Briefing.com consensus: 0.4%) following a 0.2% increase in March. That left core CPI up 2.8% year-over-year versus 2.6% in March.

The key takeaway from the report is the elevated inflation readings, which are well above the Fed's 2.0% inflation target and a signal not to expect a rate cut anytime soon.