A trader works on the floor of the New York Stock Exchange on Aug. 4, 2022.
Source: NYSE
Stock futures were little changed in overnight trading following a big rally, as investors look ahead to a key inflation report Tuesday morning.
Futures on the Dow Jones Industrial Average inched down 24 points. S&P 500 futures and Nasdaq 100 futures were both flat.
The consumer price index, a broad measure of goods and services costs across the U.S. economy, is expected to remain at a 2.4% rate in April on a year-over-year basis, according to the Dow Jones consensus. Excluding food and energy, so-called core inflation is expected to run at a 2.8% annual rate, also unchanged from the prior month.
“We will be digging into the data to see if [March’s] slower pace continued or if reports of higher costs for some businesses, which have been reported in recent survey data, have translated to higher prices for consumers,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.
Wall Street enjoyed a huge rally Monday after the U.S. and China agreed to slash steep tariffs for 90 days, raising hopes a trade war won’t tip the economy into a recession.
The blue-chip Dow surged more than 1,100 points, while the S&P 500 popped over 3%, cutting its year-to-date losses to just 0.6%. The Nasdaq Composite added 4.4%. All three averages posted their best day since April 9.
After negotiations in Switzerland over the weekend, the U.S. and China reached a deal to cut “reciprocal” tariffs between both countries down to 10%. The U.S.′ 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%.
Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” on Monday that he expects to meet once again with representatives from Beijing in the “next few weeks” to start ironing out a bigger agreement.