U.S. stocks traded lower this morning, with the Nasdaq Composite falling more than 1% on Tuesday.



Following the market opening Tuesday, the Dow traded down 0.57% to 49,420.59 while the NASDAQ dipped 1.39% to 25,909.75. The S&amp;P 500 also fell, dropping, 0.82% to 7,352.10.



Leading and Lagging Sectors



Health care shares jumped by 1.7% on Tuesday.



In trading on Tuesday, information technology stocks fell by 2.1%.



Top Headline



The headline inflation rate climbed from 3.3% year-over-year in March to 3.8% in April, topping economist expectations of 3.7%, the Bureau of Labor Statistics reported Tuesday.



The outcome marks the hottest reading since May 2023 and effectively shuts the door on any near-term Fed rate cut hopes. On a monthly basis, prices rose 0.6%, matching the 0.6% consensus after March's 0.9% print.



Equities Trading UP            



<ul>
<li>Buzzfeed Inc (NASDAQ:BZFD) shares shot up 105% to $1.50 after the company reported first-quarter financial results. The company announced it will accept a majority investment from Allen Family Digital.</li>



<li>Shares of Dreamland Ltd (NASDAQ:TDIC) got a boost, surging 91% to $1.99 after the Hong Kong-based event management company unveiled plans to explore an AI-powered intelligent image library platform through a new partnership, fueling investor optimism around its expansion into artificial intelligence-driven digital services.</li>



<li>Ernexa Therapeutics Inc (NASDAQ:ERNA) shares were also up, gaining 80% to $12.96.</li>
</ul>



Equities Trading DOWN



<ul>
<li>Power Solutions International Inc (NASDAQ:PSIX) shares dropped 36% to $39.86 after the company reported worse-than-expected first-quarter financial results.</li>



<li>Shares of Zoominfo Technologies Inc (NASDAQ:GTM) were down 32% to $4.12 after the company reported first-quarter financial results and issued second-quarter sales guidance below estimates. Also, the company cut its FY26 sales guidance below estimates.</li>



<li>Peraso Inc (NASDAQ:PRSO) was down, falling 28% to $0.99 after the company reported worse-than-expected quarterly financial results.</li>
</ul>



Commodities In commodity news, oil traded up 2.9% to $101.70 while gold traded down 1.1% at $4,678.40.



Silver traded down 1% to $85.065 on Tuesday, while copper rose 1.3% to $6.5435.



Euro zone



European shares were lower today. The eurozone's STOXX 600 fell 1.1%, while Spain's IBEX 35 Index fell 1.6%. London's FTSE 100 fell 0.3%, Germany's DAX dipped 1.6%, while France's CAC 40 declined 1.1%.



Asia Pacific Markets



Asian markets closed mostly lower on Tuesday, with Japan's Nikkei 225 gaining 0.52%, Hong Kong's Hang Seng Index falling 0.22%, China's Shanghai Composite declining 0.25% and India's BSE Sensex falling 1.92%



Economics



<ul>
<li>The headline inflation rate climbed from 3.3% year-over-year in March to 3.8% in April, topping economist expectations of 3.7%, the Bureau of Labor Statistics reported Tuesday.</li>



<li>Total household debt in the U.S. rose by $18 billion from the previous quarter to a new record high level of $18.8 trillion in the first quarter.</li>



<li>U.S. private employers added an average of 33,000 jobs per week during the four weeks ending April 25, compared to the 30,250 weekly rise in the previous period.</li>
</ul>



Photo via Shutterstock

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U.S. stocks fell on Tuesday, with the Nasdaq down over 1% and inflation rising to 3.8% in April, exceeding expectations. Health care shares increased by 1.7%, while technology stocks dropped by 2.1%. Buzzfeed's shares surged 105% after announcing a majority investment, while Power Solutions saw a 36% decline following disappointing financial results. The inflation rate's rise signals potential challenges for future Fed rate cuts. Overall, the market showed mixed reactions with commodities like oil rising and gold declining.

- U.S. stocks opened lower, with the Nasdaq Composite down more than 1% and headline inflation rising from 3.3% to 3.8%, exceeding expectations.  
- The Dow fell 0.57% to 49,420.59, while health care shares increased by 1.7% and information technology stocks dropped by 2.1%.  
- Total household debt reached a record $18.8 trillion, and private employers added 33,000 jobs per week in late April.

Nasdaq Dips Over 1%; US Inflation Surges To 3.8% In April