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US stock futures struggled on Tuesday in the wait for the latest consumer inflation report to reveal the impact of President Trump's tariffs, as the euphoria over the US-China trade truce faded.
Dow Jones Industrial Average futures (YM=F) slid 0.6%, weighed down by a sharp fall in shares of key component UnitedHealth (UNH).
Meanwhile, S&P 500 futures (ES=F) fell 0.4%, after the broad benchmark surged almost 3.3% on Monday as investors celebrated the tariff reduction deal. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were little changed.
Stocks have hit pause on the deal-driven buying frenzy as investors brace for their first glimpse into how President Trump's trade offensive has impacted inflation. April's Consumer Price Index, due at 8:30 a.m. ET, is expected to show price pressures picked up in the wake of the "Liberation Day" tariff hikes.
While the brunt of the tariffs' impact likely won't be seen for some time, bond traders are watching the consumer inflation print for clues to the Federal Reserve's path for interest rates. Markets are pricing in the first 0.25% rate cut in September, compared with previous expectations for June.
Read more: The latest on Trump's tariffs
Major companies are already bracing for a tariffs bruising. Honda (HMC, 7267.T) on Tuesday became the latest automaker to put out a warning, saying it expects a $3 billion hit to full-year profit from Trump's new auto duties.
Elsewhere in corporates, UnitedHealth suspended its 2025 guidance as its CEO Andrew Whitty stepped down immediately in a surprise move. It shares sank around 10%, with stocks of other healthcare companies such as Humana (HUM) also sliding after UnitedHealth flagged rising costs as a key factor.
LIVE 8 updates
Will Big Tech's post-pause rally withstand any weakness in economic data?
After yesterday's US-China tariff pause, tech stocks lurched higher once again, adding to an uneven post-"Liberation Day" rally that has stood out in markets.
This morning, the Big Tech names were mixed in premarket trading. Tesla (TSLA), which rose over 6% yesterday, is up only 0.3%. Apple (AAPL), which gained by the same amount, is down some.
With the release of the April Consumer Price Index this morning, investors will find out whether tariffs continue to be the only narrative that matters right now.
As my colleague Josh Schafer pointed out in today's Chart of the Day, some strategists don't see that changing:
Stocks moving in premarket trade: UnitedHealth, Coinbase, Hertz, Honda
Here are some stocks making moves on Tuesday morning, two hours ahead of the opening bell. You can find more movers on our trending tickers page.
UnitedHealth (HMC): The healthcare provider suspended its 2025 forecast just weeks after cutting its outlook, citing increased costs. It also said its CEO Andrew Whitty would step down immediately. Its shares sank over 10%, dragging on other healthcare stocks including Humana (HUM) and CVS (CVS).
Coinbase (COIN): Shares in the crypto exchange provider surged over 9% on news it will join the S&P 500 on May 19, a landmark for the industry. Coinbase will replace Discover Financial Services (DFS) on the broad benchmark.
Hertz (HTZ): The rental car company's stock dropped nearly 7% in the wake of a deeper-than-expected first quarter loss. Hertz also flagged weaker demand amid a broader downbeat forecasts for US tourism.
Honda (HMC): The Japanese auto giant said it expects a $3 billion hit to annual profit due to US tariffs on cars and car part imports. Its US-listed shares fell 4%.
Good morning. Here's what's happening today.
Goldman lifts S&P 500 targets with caution on market optimism
Goldman Sachs (GS) strategists say the outlook for US equities is brightening as US-China trade tensions ease, but caution that prices may be overly optimistic due to ongoing uncertainties.
Bloomberg News reports:
And the BofA fund manager survey says...
This report is always a fun one to dissect.
The latest Bank of America fund manager survey was done just before the new US-China trade deal. But it still offers a valuable snapshot into investor thinking.
Fund managers were positioned defensively enough that the "pain trade" could continue in the near term. That essentially means investors were underweight risk assets (or owned less of them), and may now be forced to chase stocks higher due to a sliver of good trade news.
Meanwhile, I thought the below chart was interesting, as Goldman Sachs lowered its US recession probability to 35% from 45% late Monday.
April CPI print expected to show first signs of Trump tariffs' impact on inflation
China stocks slide as trade pact undermines stimulus hopes
Chinese stocks struggled on Tuesday as optimism over the US-China rollback of tariffs was clouded by worries that Beijing will now pull back on measures to stimulate the economy.
The Hang Seng China Enterprises Index (^HSCE) in Hong Kong ended 2% lower, coming off the prior day's 3% relief rally. Shanghai's onshore benchmark CSI 300 Index (000300.SS) closed 0.2% higher.
Bloomberg reports:
Gold holds after significant drop
Gold (GC=F) maintains its loss as the easing of US-China trade tensions has pushed investors out of the safe-haven and into riskier assets.
Bloomberg reports:
