Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed lower on Tuesday as higher-than-expected inflation data from the Bureau of Labor Statistics (BLS) sent rate cut odds lower.
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News That Moved the Stock Market Today
- In April, the Consumer Price Index (CPI) rose 0.6% month-over-month, matching analyst expectations. The energy index accounted for 40% of the monthly increase. CPI climbed 3.8% for the 12 months ended April, exceeding the 3.7% estimate and marking the highest rate of growth since 2023.
- Core CPI, which excludes volatile food and energy prices, jumped 0.4% month-over-month and 2.8% year-over-year. Both were above the estimates of 0.3% and 2.7%, respectively.
- The odds of one rate cut by year-end fell to 2.8% from 3.7% a day ago, according to the CME FedWatch tool. The odds of at least one rate hike rose to 35.1% from 23.6%.
- The Senate confirmed Kevin Warsh to the Fed Board in a 51–45 vote and is expected to vote Wednesday on his nomination to succeed Jerome Powell as Chair.
- AMD (AMD) closed in the red as the semiconductor rally took a breather. That comes despite Mizuho Securities analyst Vijay Rakesh raising his AMD price target to $515 from $415.
- Wells Fargo analyst Aaron Rakers raised his price target on Nvidia (NVDA) to $315 from $265 ahead of the company’s earnings report on May 20.
- Citi analyst Atif Malik raised his price target on Broadcom (AVGO) to $500 from $475 and described the company as the “#1 semis pick in 2026.”
- AT&T (T) finished in the green after announcing a 5G network partnership with Toyota’s (TM) Lexus.