Nasdaq 100 futures drop 1% after April CPI tops forecasts

Nasdaq 100 futures fell about 1% after the U.S. Consumer Price Index for April rose 3.8% year-over-year and 0.6% month-over-month. Core CPI, which excludes food and energy, increased to 2.8% year-over-year, above economists’ forecasts. Technology-linked futures led the declines.

Headline CPI exceeded a 3.7% estimate and was the highest annual reading since May 2023. Core CPI surpassed a 2.7% forecast and reached its highest level since September 2025. Markets scaled back expectations for near-term interest-rate cuts.

S&P 500 futures slipped about 0.4% and Dow futures dipped roughly 0.1%. In Europe, Germany’s DAX fell 1.22%, the Euro Stoxx 50 dropped 1.08%, France’s CAC declined 0.72% and the UK’s FTSE 100 lost 0.41%.

Energy price pressures were cited as a factor behind the inflation surprise. Disruptions near the Strait of Hormuz were among supply issues noted that could push fuel costs higher and feed into broader consumer prices.

Major U.S. indexes had climbed in recent months on strong earnings from large-cap technology companies and investor interest in artificial intelligence. Some investors have warned that high tech valuations could face larger declines if expectations for rate cuts are pushed further into the future.

Policymakers and market participants are monitoring upcoming economic data for additional signs on inflation trends and the timing of interest-rate decisions.