U.S. stock futures pointed lower on Tuesday, as investors assessed signs of a hardening stalemate in the Middle East and awaited key inflation data.

By 06:18 ET (10:18 GMT), the Dow futures contract had slid by 52 points, or 0.1%, S&P 500 futures had dropped by 25 points, or 0.3%, and Nasdaq 100 futures had declined by 200 points, or 0.7%.

The main averages on Wall Street ticked higher in the prior session. Stocks were boosted by continued strength in chipmaking names, which have been aided by enthusiasm around artificial intelligence that has remained resilient despite headwinds from prolonged geopolitical tensions.

“[E]quities seem to have moved on from trading each and every geopolitical headline,” said Michael Brown, Senior Research Strategist at Pepperstone in a note.

“Instead, a strong bullish narrative of robust earnings growth coupled with a return of AI-driven excitement has formed, and become the main driver of upside in risk assets.”

Against this backdrop, the benchmark S&P 500 is growing at its fastest year-on-year pace since the fourth quarter of 2021, and has notched a clutch of fresh record highs so far in 2026.

U.S.-Iran impasse

U.S. President Donald Trump told reporters on Monday that a ceasefire between Washington and Tehran was on “massive life support” after he rejected Iran’s response to an American peace proposal.

Trump dismissed the counteroffer, which was similar to plans previously floated by Iran, in strident terms, calling it “unacceptable” and later “a piece of garbage” that he did not even believe was worth reading fully.

At the same time, there were indications that brinkmanship was returning to the conflict. According to CNN, Trump, impatient with dithering negotiations, is now seriously mulling restarting major combat operations.

Some observers have suggested that Trump’s much-anticipated upcoming trip to China and meeting with Chinese President Xi Jinping could help crack the stalemate, adding that China, a major importer of Iranian crude, may act as a guarantor of any long-term peace agreement.

But with uncertainty looming over the crisis and, crucially, the Strait of Hormuz remaining all but shuttered to tanker traffic, oil prices climbed once again. Brent crude futures, the global oil benchmark, were last higher by 3.1% at $107.46 a barrel, while U.S. West Texas Intermediate crude futures gained 3.3% to $101.31 a barrel.

As they have been throughout much of the more than two-month old conflict, oil prices are well above pre-war levels, fueling worries over an inflationary spike that could dent global economic activity.

CPI ahead

Markets will be keeping particularly close tabs on monthly consumer price data from the U.S. on Tuesday as a result.

April’s headline consumer price index, a key gauge of inflation, is expected to speed up to 3.7% on an annualized basis. In March, the figure accelerated to 3.3%, largely due to a spike in gasoline pump prices.

Month-on-month, CPI is seen slowing to 0.6% from 0.9%.

Analysts have also been on the lookout for any hints that the energy shock is contributing to higher prices in goods beyond gasoline. So-called “core” CPI, which strips out volatile items like food and fuel, is tipped to stand at 2.7% year-on-year and 0.3% month-on-month. The figures came in at 2.6% and 0.2% in the prior month.

In individual stocks, GameStop shares slumped in premarket U.S. trading after eBay rejected the videogame retailer’s $56 billion takeover offer due to doubts over how the deal would be financed. Shares of eBay dipped as well.

Elsewhere, U.S. food and facilities manager Aramark posted better-than-anticipated fiscal second-quarter revenue, sending its shares higher.

Hims & Hers Health also tumbled after the telehealth company logged lower-than-expected first-quarter revenue and a surprise loss in the wake of changes in its weight-loss products.