Live Nasdaq Composite: Markets Tread Carefully as Oil Climbs and Inflation Lingers Above Fed Target

The Nasdaq Composite fell 0.2% amid cautious optimism on inflation and renewed Middle East tensions that pushed oil higher. April’s Personal Consumption Expenditures price index rose 0.4% month over month, while the 12-month rate held at 3.8%, matching expectations. The inflation reading offered some comfort that pricing pressures may be easing, though inflation remained above the Federal Reserve’s 2% target. Oil prices climbed after Iran’s Revolutionary Guard claimed it targeted a U.S. airbase following U.S. strikes on an Iranian military site, reviving concerns about Strait of Hormuz disruptions. U.S. GDP growth was revised to 1.6% annualized for the first quarter, below the 2.0% estimate. Snowflake surged 38% in premarket after a Q1 earnings and revenue beat and stronger fiscal Q2 guidance.

"April's Personal Consumption Expenditures price index came in at a seasonally adjusted 0.4% monthly gain, with the 12-month rate holding at 3.8%, matching economist expectations. The cooler monthly print gave traders a measure of comfort that pricing pressures may be starting to ease, though with inflation still running well above the Federal Reserve's 2% target, the all-clear is far from sounded."

"Oil reasserted itself as a market variable, with WTI crude futures rising roughly 2% to top $90 a barrel and Brent gaining nearly 2% to push above $96, after Iran's Revolutionary Guard claimed it targeted a U.S. airbase, according to the Tasnim News Agency, following fresh U.S. military strikes on an Iranian military site. The escalation revived concerns over Strait of Hormuz disruptions that markets had only recently begun to look past."

"The U.S. economy grew at a 1.6% annualized rate in the first quarter, falling short of the 2.0% estimate and coming in below the initially reported pace, according to the latest GDP revision from the Commerce Department. The downward revision adds to a growing list of data points suggesting the economy is losing some momentum, though the reading still marks a meaningful step up from the prior quarter's 0.5% growth rate"

"The session's standout mover was Snowflake ( NYSE:SNOW), which soared 38% in premarket trading after delivering a Q1 earnings and revenue beat alongside stronger-than-expected fiscal Q2 guidance."

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