Global markets are on edge ahead of Wednesday's Consumer Price Index report, which economists expect to show headline inflation reaching 4.2 percent—the highest level in over three years. The prospect of hot inflation data has rattled investors already jittery from Middle East tensions and Friday's strong jobs report. Tech stocks across Asia and Europe slipped into negative territory, while Nasdaq futures faced pressure.

Federal Reserve policy traders now price in increased odds of a rate hike by September, potentially putting new Chair Kevin Warsh at odds with President Trump. Rising energy costs and geopolitical uncertainty have created a volatile backdrop for Wall Street, with Bank of America warning of bear-market indicators emerging across major indices.

All eyes turn to SpaceX's anticipated trading debut on Friday, where the company aims to raise more than $74 billion from eager investors. However, Senator Elizabeth Warren is challenging the offering, arguing the $1.77 trillion valuation lacks proper scrutiny. Her concerns center on multiple share classes giving Musk disproportionate voting power and the company's lofty interplanetary ambitions.

Warren's letter to SEC Chair Paul Atkins calls for delaying the IPO to protect retail investors, though the effort faces long odds. Index inclusion by Nasdaq and FTSE Russell would automatically thrust SpaceX shares into millions of retirement portfolios. The controversy highlights growing skepticism about AI-driven valuations amid broader market uncertainty.