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US stock futures slid on Tuesday, signaling a pause in the recent rally amid growing warnings that investor relief over the thaw in trade tensions and easing inflation may be misplaced.
S&P 500 futures (ES=F) dropped 0.3% on the heels of a sixth straight day of gains for the broad benchmark. Dow Jones Industrial Average futures (YM=F) nudged 0.1% lower, while contracts on the tech-heavy Nasdaq 100 (NQ=F) backed off 0.4%.
Since the US and China struck a deal to temporarily roll back tariffs last week, markets have been shaking off fears of a trade war and enjoying a rally.
Concerns are growing, however, including from JPMorgan CEO Jamie Dimond, that investors' confidence in easing trade tensions could be overblown. Indeed, tariff levels remain elevated and a growing chorus of Federal Reserve officials say they see interest-rate cuts on hold until September amid trade uncertainty.
Read more: The latest on Trump's tariffs
Tariffs have played a prominent role this earnings season with Walmart (WMT) becoming the latest retail giant to warn that rising prices are coming, prompting pushback from the president.
The impact of tariff concerns on consumers will continue to be in focus when Home Depot (HD) reports earnings on Tuesday. Investors will be looking for signs of waning consumer activity amid expectations of stiffening prices.
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Good morning. Here's what's happening today.
JPMorgan, Citi expect Europe stocks to beat US by most in decades
Is it time to "Sell America"? Wall Street strategists are offering up more fuel for the debate, as investors gauge the economic drag of tariffs and inflation on the economy.
Some strategists are betting that stocks in Europe will outperform their US counterparts this year by the most in at least two decades, Bloomberg reports:
Read more here.
CATL stock jumps 16% on Hong Kong debut in biggest IPO this year
Contemporary Amperex Technology Co.'s stock (3750.HK) jumped 14% on its Hong Kong trading debut, in the world's biggest listing of 2025.
Shares in the Chinese battery giant — a key supplier to Tesla (TSLA) — closed at $306.20 apiece, compared with the subscription price of $236. CATL raised $4.6 billion in its offering in the face of a Pentagon blacklisting and trade tensions.
Bloomberg reports:
Oil trades flat as markets digest Trump pulling back from Ukraine-Russia peace talks
