New York—Stock futures showed little movement in overnight trading following a significant rally, as investors prepared for a crucial inflation update scheduled for Tuesday morning. Futures for the Dow Jones Industrial Average dipped by 16 points, while both the S&P 500 and Nasdaq 100 fared similarly, experiencing only slight declines.
The consumer price index (CPI), which measures the costs of a wide range of goods and services across the United States, is anticipated to remain steady at a 2.4% annual increase for April, according to the consensus among analysts. When excluding volatile food and energy prices, core inflation is also expected to hold at a 2.8% annual rate, unchanged from the previous month.
Market analysts are eager to dissect the latest data to determine if the slower inflation pace observed in March has persisted. Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management, noted the importance of recent survey reports indicating rising costs for certain businesses. “We will be digging into the data to see if these indicators will translate into higher consumer prices,” he said.
Wall Street experienced a substantial surge on Monday, responding positively to a recent agreement between the United States and China aimed at reducing tariffs for a period of 90 days. This development has fostered optimism that tensions between the two largest economies might not escalate into a recession.
The Dow saw a remarkable increase, soaring more than 1,100 points, while the S&P 500 climbed over 3%, narrowing its year-to-date losses to just 0.6%. The Nasdaq Composite enjoyed an impressive boost of 4.4%. Collectively, these gains marked the best trading day for the three indices since April 9.
During negotiations held in Switzerland over the weekend, the two nations reached an understanding to lower reciprocal tariffs to 10%. However, the U.S. will maintain a 20% duty on Chinese imports related to fentanyl, leaving the overall tariffs on China at 30%. Treasury Secretary Scott Bessent indicated on CNBC that he anticipates further discussions with Chinese representatives in the coming weeks to work toward a more comprehensive agreement.
As investors await the latest inflation figures, the dynamics of international trade and economic policy continue to play a critical role in shaping market behavior. Understanding these trends will be essential for gauging the broader economic landscape moving forward.