Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2025.
Brendan Mcdermid | Reuters
Stock futures ticked lower on Tuesday night as investors sought details on a trade policy consensus reached between the U.S. and China. They also anticipated the release of May’s consumer inflation report.
Futures tied to the S&P 500 were off 0.16%, while Nasdaq 100 futures inched down 0.17%. Dow Jones Industrial Average futures lost 55 points, or 0.14%.
U.S. and Chinese officials reached a consensus on trade after a second day of talks in London, according to an NBC transcript. U.S. Commerce Secretary Howard Lutnick said that he and U.S. Trade Representative Jamieson Greer will return to Washington, D.C., to “make sure President Trump approves” the framework. Earlier, Treasury Secretary Scott Bessent said he would leave the discussions and return to the U.S. to testify before Congress on Wednesday.
The discussions are a key focus for investors and a broader market that remains jittery toward any jolts on trade policy. Both China and the U.S. previously agreed to temporarily pause high tariffs on one another in May, although a fully ironed out agreement has yet to materialize.
In regular trading on Tuesday, the S&P 500 rose about 0.6%, posting a third straight positive session. The broad market index sits less than 2% off the high it notched in February. The Nasdaq Composite added 0.6% on Tuesday, while the 30-stock Dow climbed 0.3%.
Even as stocks have been resurging, tariff fears and rising bond yields could hang over the market, according to Deutsche Bank.
“One key concern is that the Trump administration, buoyed by the market rebound, may resume aggressive tariff rhetoric—potentially triggering renewed retaliation from China and Europe, as seen earlier this year,” the firm’s group chief economist David Folkerts-Landau said in a Tuesday note.
“At the same time, rising long-end bond yields are amplifying fiscal concerns globally, particularly given plans for expanded deficits across multiple major economies,” he added. “With several countries already on unsustainable debt paths, the events of 2025 may have accelerated an inevitable reckoning.”
Investors will get further insight into the U.S. economy on Wednesday morning as the Bureau of Labor Statistics rolls out May’s reading of the consumer price index. Economists polled by Dow Jones call for a 0.2% month-over-month increase, while headline CPI is anticipated to have grown 2.4% from 12 months earlier. A hot report could spook investors who are already on edge over inflationary pressures.
“Ultimately this report is not expected to cause any significant changes to the Fed’s current wait and see approach when it comes to setting rates,” said Sam Millette, director of fixed income at Commonwealth Financial Network. “With that being said, we’ll have to wait and see if the report shows the anticipated modest rise in price pressure that’s expected or if there are any surprises in store for investors.”
On the earnings front Wednesday, traders will look for reports from Chewy and Oracle.
—CNBC’s Evelyn Cheng contributed reporting.