Nasdaq 100 Futures Slide About 1% After April CPI Comes in Hotter Than Forecast

Nasdaq 100 futures fell roughly 1% after April's US inflation report landed slightly above Wall Street expectations, unsettling an already jittery market. The Consumer Price Index rose 3.8% year-over-year and 0.6% month-over-month. While close to consensus, the data carried enough upside surprise to pressure risk assets. The headline CPI exceeded the 3.7% estimate and marked the highest annual reading since May 2023. Core CPI, which excludes food and energy, increased to 2.8% year-over-year, topping the 2.7% forecast and reaching its highest level since September 2025. The risk-off move spread beyond tech. S&P 500 futures slid about 0.4%, while Dow futures edged down 0.1%. Technology shares took the brunt of the selling as firmer inflation expectations threaten growth-stock valuations, which rely heavily on lower discount rates applied to future earnings. European equities also retreated. Germany's DAX fell 1.22%, the Euro Stoxx 50 dropped 1.08%, France's CAC 40 declined 0.72%, and the UK's FTSE 100 lost 0.41%. The 3.8% headline reading signals a notable pickup from recent trends. Energy-price pressures—potentially tied to geopolitical tensions and disruptions near the Strait of Hormuz—appear to be feeding through to broader consumer prices. The core CPI print at 2.8% drew particular attention, as the Federal Reserve typically places greater weight on core inflation when assessing underlying price momentum. The report also lands at an awkward moment for tech investors. Major indexes have recently climbed to record highs on AI optimism and strong earnings from megacap companies. Investor Michael Burry, known for his pre-2008 housing-market bet, has warned that the Nasdaq 100 could face sharp declines amid what he views as stretched tech valuations. Inflation readings that keep the Fed on hold—or push rate-cut expectations further out—could provide the kind of catalyst that amplifies those concerns.