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U.S. Futures Slip as Oil Rises, Nvidia Boosts AI Stocks

5/12/2026

36 8 Full Breakdown

Summary

Nvidia Fuels Rally

U.S. futures slipped Tuesday, the Dow down 56 points and the Nasdaq 100 down 200.5 points.
WTI crude rose 3.12% while Brent climbed 2.46% to about $106 a barrel.
Reuters projects April headline CPI up 0.6% and core CPI up 0.3%.
Nvidia gained 2% on AI earnings, prompting Micron Technology to rise 6.5% and causing airline, industrial and gold-mining stocks to fall as the S&P 500, Dow and Nasdaq closed at highs.

Summary

Fed Eyes CPI

The Federal Reserve (Fed) is focusing on core CPI, with a hotter headline likely to prompt a more hawkish stance.
A softer core CPI could lower bond yields and lift growth stocks, while a sharp oil surge would likely weigh on the Nasdaq and delay Fed-cut expectations.
Pre-market trading on Tuesday was cautious, with ING analysts Francesco Pesole, Frantisek Taborsky, and Chris Turner saying inflation, oil and the AI rally dominate market direction.

History

Historical Context

In October 1973 OAPEC embargoed U.S. oil shipments after the Yom Kippur War, sending crude from about $3 to $12 per barrel—a four-fold rise. Nixon’s administration responded with price controls and the “Project Independence” plan, illustrating how abrupt energy spikes can provoke the monetary tightening, a dynamic echoed in today’s broader market turbulence.

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Nvidia Fuels Rally

U.S. futures slipped Tuesday, the Dow down 56 points and the Nasdaq 100 down 200.5 points.
WTI crude rose 3.12% while Brent climbed 2.46% to about $106 a barrel.
Reuters projects April headline CPI up 0.6% and core CPI up 0.3%.
Nvidia gained 2% on AI earnings, prompting Micron Technology to rise 6.5% and causing airline, industrial and gold-mining stocks to fall as the S&P 500, Dow and Nasdaq closed at highs.

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