Editor’s note: The future prices of benchmark tracking ETFs, the lede, the economic data and the headline were updated in the story.
U.S. stocks rose on Tuesday, following Monday’s rally. Futures of the major benchmark indices were trading higher.
Wholesale inflation showed continued momentum in March, with the Producer Price Index (PPI) for final demand rising 0.5% for the month. On a year-over-year basis, the unadjusted index surged by 4.0%, marking the largest 12-month advance since February 2023. This advance was heavily driven by a 1.6% jump in final demand goods, largely fueled by an 8.5% spike in energy costs—including a notable 15.7% jump in gasoline prices.
On Monday, Vice President JD Vance hinted at a potential path forward in stalled Iran talks, saying that a diplomatic breakthrough with Iran remains within reach, but only if Tehran agrees to Washington’s core nuclear demands.
If America’s “red lines” are met, then this can be “a very, very good deal for both countries,” Vance said, adding that the next move rests with Iran.
Meanwhile, the 10-year Treasury bond yielded 4.28%, and the two-year bond was at 3.76%. The CME Group's FedWatch tool‘s projections show markets pricing a 99.5% likelihood of the Federal Reserve leaving the current interest rates unchanged in its April meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.13% |
| S&P 500 | 0.19% |
| Nasdaq 100 | 0.34% |
| Russell 2000 | 0.43% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Tuesday. The SPY was up 0.29% at $688.11, while the QQQ advanced 0.51% to $620.63.
Stocks In Focus
Sana Biotechnology
- Sana Biotechnology Inc. (NASDAQ:SANA) surged 20.25% in premarket on Tuesday after the company announced a strategic collaboration with Mayo Clinic to advance the development of SC451. Also, the company sold 7.5 million shares at $3.33 per share for $25 million to Mayo Clinic.
- Benzinga’s Edge Stock Rankings indicate that SANA maintains a weak price trend in the short, medium, and long terms.
FB Financial
- FB Financial Corp. (NYSE:FBK) declined by 3.47% after reporting mixed results for the first quarter. The company posted quarterly earnings of $1.12 per share, which beat the analyst consensus estimate of $1.11 per share.
- Benzinga’s Edge Stock Rankings indicate that FBK maintains a strong trend in the long term but a weak trend in the short and medium terms.
ChargePoint Holdings
- ChargePoint Holdings Inc. (NYSE:CHPT) jumped 6.63% as President & CEO Richard Wilmer purchased 46,847 shares of the company's stock, in a transaction valued at $249,694.
- Benzinga’s Edge Stock Rankings indicate that CHPT maintains a weak price trend in the short, long and medium terms.
Chevron
- Chevron Corp. (NYSE:CVX) fell 0.53% despite signing an agreement with Venezuela’s state-owned oil company PDVSA and the country’s Ministry of Hydrocarbons to increase crude oil production in the country.
- Benzinga’s Edge Stock Rankings indicate that CVX maintains a strong price trend over the short, medium, and long terms.
FedEx
- FedEx Corp. (NYSE:FDX) was down 0.31% after it said that John Dietrich will step down as executive vice president and chief financial officer on June 1 upon successful completion of the spin-off of FedEx Freight into a new publicly traded company.
- Benzinga’s Edge Stock Rankings indicate that FDX maintains a strong price trend in the short, medium, and long terms, with a solid quality score.
Cues From Last Session
Information technology, financial, and consumer discretionary equities logged the largest gains Monday as most S&P 500 sectors finished positively, while utilities and consumer staples went against the broader market trend to close lower.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.63% | 48,218.25 |
| S&P 500 | 1.02% | 6,886.24 |
| Nasdaq Composite | 1.23% | 23,183.74 |
| Russell 2000 | 1.52% | 2,670.49 |
Insights From Analysts
Professor Jeremy Siegel maintains a cautious near-term outlook for the U.S. stock market and economy due to the complicating factors of “rising oil prices and a renewed pickup in money growth.”
He warns that recent positive CPI data is backward-looking and does not account for the ongoing energy shock moving through the system.
Consequently, Siegel predicts that higher fuel and fertilizer costs will inflate goods prices in the coming months. Because consumer demand remains firm, there is a risk that “the next move in rates could be up rather than down.”
Regarding equities, Siegel expects that “unless we get a meaningful de-escalation that takes oil decisively lower,” the stock market will remain “mostly rangebound in the near term.”
He currently views the economy as an “awkward mix,” anticipating a sell-off stemming from failed geopolitical talks, followed by a “choppy, sideways market.” However, he maintains his “long-run optimism on equities,” noting that a favorable resolution on the energy front could still push stocks to new highs.
Upcoming Economic Data
Here's what investors will be keeping an eye on this Tuesday.
- PPI Data: The 0.5% advance in the March PPI was entirely driven by the goods sector, which climbed 1.6%. In stark contrast, prices for final demand services remained completely unchanged for the month.
- Fed governor Michael Barr is scheduled to speak at 5:50 p.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 2.37% to hover around $96.73 per barrel.
Gold Spot US Dollar rose 0.92% to hover around $4,783.80 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.11% lower at the 98.2580 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 5.46% higher at $74,624.01 per coin, as per the last 24 hours.
Asian markets closed higher on Tuesday, except India’s Nifty 50 index. Hong Kong's Hang Seng, China’s CSI 300, Australia's ASX 200, South Korea's Kospi, and Japan's Nikkei 225 indices rose. European markets were also higher in early trade.
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