CPI numbers come out at 8:30
The consensus is a 3.6% gain in April. That would be the biggest gain since Sept 2011.
Core CPI, which excludes food and energy, is expected to be up 0.3%, or 2.3% year over year.
The specter of inflation is what's been hammering the Nasdaq.
With inflation comes higher interest rates (usually), and the discounted present value of future cash flows shrinks as interest rates rise. Growth stocks with higher p/e's suffer as a result.
The Fed has maintained that this uptick will be temporary and won't affect its easy money policy.
Others think otherwise.
Watch the futures at 8:30. They will be extremely volatile immediately after the announcement.