Nasdaq 100: Tech Stocks Recover While Investors Brace for CPI Shock

US stocks await June CPI as rising oil prices and Fed Chair Warsh's testimony could drive sharp market moves. The S&P 500 triangle pattern signals growing uncertainty, with traders expecting a major breakout or breakdown. Higher Treasury yields and crude oil above $80 are raising concerns that inflation could stay elevated longer.

Dow futures dropped 196 points, or 0.37%, Tuesday morning. S&P 500 futures slipped 0.10%. Nasdaq futures bucked the trend, up 0.42%, as chip stocks bounced back from Monday’s rout.

The banks already delivered before the bell. Bank of America and Wells Fargo both cleared expectations and JPMorgan Chase beat on the numbers. But nobody is trading earnings this morning. The June CPI print and Warsh’s first Congressional testimony as Fed Chair land this afternoon and those two catalysts own the rest of the session.

September E-mini S&P 500 Index futures are drifting lower early Tuesday. Today’s price action has turned 7628.75 into a new main top to go along with additional main tops at 7648.75 and 7693.75. A series of higher bottoms are providing support at 7468.50, 7357.25 and 7292.25. The swing chart indicates that the swing tops and swing bottoms are forming a compressing triangle formation, which typically indicates trader indecision and impending volatility. They are expecting either a melt-up or a melt-down.