US Stock Futures Flat as Traders Await Inflation Data and Monitor Iran Tensions

U.S. stock futures showed minimal change early Tuesday as investors geared up for the release of April's consumer price index (CPI) reading, a key inflation indicator. Traders also continued to monitor developments in the ongoing conflict between the U.S. and Iran.

S&P 500 futures were down 0.16%, while Nasdaq 100 futures slipped 0.33%. Futures tied to the Dow Jones Industrial Average also registered slight declines.

This cautious trading comes after a strong performance in the previous regular session, where both the S&P 500 and Nasdaq Composite closed at fresh intraday and record highs. The S&P 500 added 0.19%, the Nasdaq Composite gained 0.1%, and the Dow Jones Industrial Average rose by 95.31 points, or 0.19%.

Geopolitical tensions contributed to market sentiment, as oil prices saw an increase on Monday. President Donald Trump described the month-old ceasefire between the U.S. and Iran as "unbelievably weak" and "on massive life support." Iran's latest counteroffer to end the war includes demands for war reparations, full sovereignty over the Strait of Hormuz, the release of frozen assets, and the lifting of sanctions.

The economic calendar for Tuesday is highlighted by the release of April's CPI data at 8:30 a.m. ET. Economists surveyed by Dow Jones anticipate a 3.7% year-over-year increase in headline inflation, with a 0.6% rise expected for the month.

The ongoing robust earnings season has been a significant driver for the stock market's recent ascent. Marci McGregor, head of portfolio strategy at Merrill and Bank of America Private Bank, expressed optimism about the market's direction, noting that corporate profits, capital expenditures, and a strong labor market are fueling the rally.

"If we get weakness after this really strong recovery from the March lows, I would see it as a buying opportunity, because this is a market that is being fueled by corporate profits, by capex, and frankly by a strong labor market," McGregor stated on CNBC's "Closing Bell." "There's a lot of reasons to be positive."

A number of companies are scheduled to report their earnings before the market opens on Tuesday, including Under Armour, Vodafone, On Holding, Aramark, eToro, and Tencent Music Entertainment. In addition to the CPI reading, traders will also be watching for April's final hourly earnings, average workweek data, and treasury budget figures.

On Monday, six of the 11 GICS sectors closed higher, led by the energy sector's 2.63% gain. The materials, industrials, and information technology sectors also saw positive returns. Conversely, the communication services sector led the declines, dropping 2.33%, followed by consumer staples and consumer discretionary.

In after-hours trading, notable movers included Hims & Hers Health, which fell more than 12% after issuing guidance for adjusted EBITDA. Gitlab shares were down 8% following the announcement of a restructuring plan tied to AI integration. Cleanspark also saw a decline of 10% due to wider-than-anticipated second-quarter losses.