Nasdaq Dips Over 1%; US Inflation Surges To 3.8% In April

U.S. stocks traded lower this morning, with the Nasdaq Composite falling more than 1% on Tuesday.

Following the market opening Tuesday, the Dow traded down 0.57% to 49,420.59 while the NASDAQ dipped 1.39% to 25,909.75. The S&P 500 also fell, dropping, 0.82% to 7,352.10.

Leading and Lagging Sectors

Health care shares jumped by 1.7% on Tuesday.

In trading on Tuesday, information technology stocks fell by 2.1%.

Top Headline

The headline inflation rate climbed from 3.3% year-over-year in March to 3.8% in April, topping economist expectations of 3.7%, the Bureau of Labor Statistics reported Tuesday.

The outcome marks the hottest reading since May 2023 and effectively shuts the door on any near-term Fed rate cut hopes. On a monthly basis, prices rose 0.6%, matching the 0.6% consensus after March's 0.9% print.

Equities Trading UP
           

• Buzzfeed Inc (NASDAQ:BZFD) shares shot up 105% to $1.50 after the company reported first-quarter financial results. The company announced it will accept a majority investment from Allen Family Digital.
• Shares of Dreamland Ltd (NASDAQ:TDIC) got a boost, surging 91% to $1.99 after the Hong Kong-based event management company unveiled plans to explore an AI-powered intelligent image library platform through a new partnership, fueling investor optimism around its expansion into artificial intelligence-driven digital services.
• Ernexa Therapeutics Inc (NASDAQ:ERNA) shares were also up, gaining 80% to $12.96.

Equities Trading DOWN

• Power Solutions International Inc (NASDAQ:PSIX) shares dropped 36% to $39.86 after the company reported worse-than-expected first-quarter financial results.
• Shares of Zoominfo Technologies Inc (NASDAQ:GTM) were down 32% to $4.12 after the company reported first-quarter financial results and issued second-quarter sales guidance below estimates. Also, the company cut its FY26 sales guidance below estimates.
• Peraso Inc (NASDAQ:PRSO) was down, falling 28% to $0.99 after the company reported worse-than-expected quarterly financial results.

Commodities

In commodity news, oil traded up 2.9% to $101.70 while gold traded down 1.1% at $4,678.40.

Silver traded down 1% to $85.065 on Tuesday, while copper rose 1.3% to $6.5435.

Euro zone

European shares were lower today. The eurozone's STOXX 600 fell 1.1%, while Spain's IBEX 35 Index fell 1.6%. London's FTSE 100 fell 0.3%, Germany's DAX dipped 1.6%, while France's CAC 40 declined 1.1%.

Asia Pacific Markets

Asian markets closed mostly lower on Tuesday, with Japan's Nikkei 225 gaining 0.52%, Hong Kong's Hang Seng Index falling 0.22%, China's Shanghai Composite declining 0.25% and India's BSE Sensex falling 1.92%

Economics

• The headline inflation rate climbed from 3.3% year-over-year in March to 3.8% in April, topping economist expectations of 3.7%, the Bureau of Labor Statistics reported Tuesday.
• Total household debt in the U.S. rose by $18 billion from the previous quarter to a new record high level of $18.8 trillion in the first quarter.
• U.S. private employers added an average of 33,000 jobs per week during the four weeks ending April 25, compared to the 30,250 weekly rise in the previous period.

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