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U.S. Futures Dip After Court Upholds Trump Tariffs; CPI, Trade Talks in Focus

U.S. stock index futures edged lower Tuesday evening after a federal appeals court ruled that President Donald Trump’s tariffs could remain in effect, dampening optimism over a legal challenge to block the duties. The decision adds uncertainty to an already fragile market sentiment, with investors closely watching developments in U.S.-China trade relations.

Futures had briefly turned positive after U.S. and Chinese officials said they had reached a consensus on a trade framework following talks in London. However, the lack of concrete details on key issues like chip export restrictions and rare earth mineral trade kept markets cautious. The framework, tied to a May Geneva deal, now awaits approval from Trump and Chinese President Xi Jinping.

By 20:52 ET (00:52 GMT), S&P 500 Futures fell 0.2% to 6,034.0, Nasdaq 100 Futures declined 0.2% to 21,918.0, and Dow Jones Futures dropped 0.2% to 42,838.0.

The appeals court decision upholding Trump’s "liberation day" tariffs reinforces one of his signature economic policies, despite growing concerns over their long-term economic impact. Recent data shows slowing growth, with both consumers and businesses wary of policy instability and trade tensions.

Meanwhile, Wall Street closed higher on Tuesday, lifted by optimism over improved U.S.-China ties. The S&P 500 climbed 0.6% to 6,038.81, near record highs. The Nasdaq Composite rose 0.6% to 19,714.99, while the Dow Jones gained 0.3% to 42,866.87. Tech stocks, including Nvidia (NASDAQ: NVDA), led gains on expectations that chip restrictions may ease.

All eyes now turn to Wednesday’s Consumer Price Index (CPI) release, with forecasts suggesting a slight rise in inflation. Persistent inflation could pressure the Federal Reserve to maintain higher interest rates, influencing future market direction.

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