US Stock Futures Steady as Markets Eye CPI After US-China Trade Truce

U.S. stock index futures held steady on Monday night as investor focus shifted to Tuesday’s key inflation data, following a sharp rally sparked by a new U.S.-China trade agreement. By 7:15 PM ET, S&P 500 Futures hovered at 5,865.25, Nasdaq 100 Futures were flat at 20,942.0, and Dow Jones Futures remained unchanged at 42,508.0.

Markets surged earlier after Washington and Beijing announced a significant easing of trade tensions. The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China reduced its retaliatory tariffs from 125% to 10%. Additionally, China pledged to roll back certain non-tariff barriers, including export controls on rare earth elements. The breakthrough came from high-level talks held in Geneva over the weekend.

The S&P 500 jumped 3.3% to 5,844.17, while the Nasdaq Composite soared 4.4% to 18,708.34. The Dow gained 2.8%, reflecting optimism across the board. Tech stocks led the rally, driven by hopes that trade disruptions would ease for firms like Apple. AI-related equities, including Microsoft, Google, Nvidia, and Broadcom, also saw strong buying after a bullish note from Bank of America projected sustained capital spending on AI infrastructure through 2026.

Despite the upbeat sentiment, traders are cautious ahead of the April Consumer Price Index (CPI) report. Analysts expect the data to show persistent inflationary pressures, partly fueled by lingering tariffs. With inflation still above target, the Federal Reserve has signaled no immediate rate cuts. However, futures markets reflect growing expectations for rate cuts later this year, with a 36.3% chance for July and 52.1% for September, according to the CME FedWatch Tool.

Investors are closely watching Tuesday’s CPI as a key indicator of future monetary policy direction.