U.S. stock futures were pointing lower on Tuesday, with the Nasdaq 100 leading the decline after Monday's mixed close. The culprit? Inflation fears are back, and they're not messing around.

Ed Yardeni, the veteran market strategist, is sounding the alarm. He sees recent CPI and PPI data as evidence that the Fed is "behind the curve" on inflation. Yardeni expects the central bank to completely abandon its easing stance and adopt a "tightening bias" at its June meeting, followed by a 25-basis-point rate hike in July. That's a stark shift from the rate-cut narrative that dominated much of last year.

The bond market is reflecting the anxiety. The 10-year Treasury yield sat at 4.60%, while the two-year note yielded 4.06%. Despite Yardeni's hawkish view, the CME Group's FedWatch tool shows markets pricing a 98.8% probability that the Fed will leave rates unchanged in June. But as we've learned, markets can be wrong.

Here's how the major index futures were shaping up before the bell:

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, were both lower in premarket trading. SPY was down 0.16% at $737.49, while QQQ slipped 0.36% to $703.35.

Stocks In Focus

XP Inc. (XP)

Shares of the Brazilian financial services firm tumbled 6% in premarket after reporting worse-than-expected first-quarter financial results. The company also announced that Gustavo Alejo Viviani will take over as CFO starting August 3. According to stock rankings, XP maintains a weak price trend in the long, short, and medium terms, but it does have a solid value score.

Akamai Technologies (AKAM)

Akamai shares fell 2.5% after the company announced plans to launch a $1.3 billion senior notes offering. Despite the dip, the stock's rankings show a strong price trend across all time frames, with a moderate growth score.

Atmos Energy (ATO)

Atmos Energy was the standout winner, jumping 10.13% after reporting strong second-quarter earnings. The company posted net income of $581.9 million and raised its annual dividend by 14.9% to $4.00 per share. Rankings indicate a strong long-term price trend but weak short- and medium-term trends, with a moderate quality score.

GE Aerospace (GE)

General Electric shares edged up 0.17% after Japan Airlines signed a 10-year maintenance and overhaul deal with GE Aerospace to cover its Boeing 787 fleet. The stock's rankings show a weak price trend across all time frames, with a moderate growth ranking.

Toll Brothers (TOL)

Toll Brothers dipped 0.13% ahead of its earnings report after the bell. Analysts expect earnings of $2.58 per share on revenue of $2.41 billion. The stock's rankings indicate a weak price trend across all time frames, but a solid value score.

Cues From Last Session

Monday's session was a mixed bag. Energy, financial, and consumer staples stocks posted the biggest gains, while information technology and industrials lagged. Here's how the major indices closed:

Insights From Analysts

According to Jeffrey Roach, Chief Economist at LPL Financial, the U.S. economy "muddles on" despite facing localized headwinds. While geopolitical tensions in the Middle East dominate investor focus, Roach expects the economic expansion to remain resilient.

He notes that "the growth hit remains manageable and should fade as trade adjusts with the economy likely skirting recession." Under his team's baseline expectations, supply chain frictions are forecast to subtract 0.2 percentage points from second-quarter real GDP and 0.3 percentage points from the third quarter.

Crucially, Roach believes these pressures "pose a greater risk to inflation than to economic growth." If the conflict persists through the summer, it could plausibly add a full percentage point to inflation this year.

Regarding the U.S. stock market, diplomatic negotiations have supported equities. Given the improving macroeconomic backdrop, Roach's committee recently moved its recommendation to a "tactical overweight" for equities.

Upcoming Economic Data

Here's what investors will be watching on Tuesday:

• April's pending home sales data at 10:00 a.m. ET
• Philadelphia Fed President Anna Paulson speaks at 7:00 p.m. ET
• Atlanta Fed First Vice President Cheryl Venable delivers closing remarks at 7:45 p.m. ET

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading lower in early New York trade, down 1.24% to around $103.09 per barrel.

Gold spot fell 0.45% to around $4,545.43 per ounce, well off its record high of $5,595.46. The U.S. Dollar Index was flat, up 0.01% at 99.2060.

Bitcoin (BTC) was trading 0.31% higher at $77,105.03 per coin over the last 24 hours.

Asian markets closed mixed on Tuesday. Japan's Nikkei 225 and South Korea's Kospi fell, while Australia's ASX 200, India's Nifty 50, China's CSI 300, and Hong Kong's Hang Seng all rose. European markets were higher in early trade.