Dow, S&P 500, Nasdaq Futures Flat Ahead of CPI Data on Tariff-Driven Inflation

US Futures Pull Back as Investors Await CPI Data for Tariff Impact Clarity

US stock futures slipped in early Tuesday trading, halting the rally sparked by the temporary trade truce between the United States and China. Investor focus has now shifted to the upcoming Consumer Price Index (CPI) data release, which is expected to provide the first tangible indication of how the recent tariff increases may be influencing domestic inflation.

Highlights:

• US stock futures declined on Tuesday after Monday’s rally

• Focus shifts from trade deal optimism to CPI-led inflation concerns

• CPI release expected to offer insight into tariff-driven price pressures

S&P 500, Nasdaq, Dow Futures Retreat After Monday Surge

Futures tied to the S&P 500 fell 0.4%, reversing some of the benchmark’s 3.3% rally from the prior session. Nasdaq 100 futures declined 0.4%, while Dow Jones Industrial Average futures eased 0.2%, as investors took a more cautious stance ahead of the inflation data release.

Highlights:

• S&P 500 futures dropped 0.4%, giving up part of Monday’s 3.3% gain

• Nasdaq 100 futures declined 0.4%, Dow Jones futures slipped 0.2%

• Markets entering a wait-and-watch mode after initial tariff relief rally

April CPI to Reveal Initial Tariff Influence on US Inflation

Investors are closely watching the April CPI report, scheduled for release at 8:30 a.m. ET, to assess early signs of inflationary pressures stemming from recent tariff hikes. Although the broader impact of tariffs may take time to materialize, the CPI data is likely to provide preliminary insights into shifting cost dynamics across sectors.

Highlights:

• April CPI report expected to shed light on initial inflation trends

• Tariff-driven inflation is in early stages but being closely tracked

• Inflation data could shape near-term market sentiment and Fed policy bets

Bond Markets Reassess Fed Rate Cut Timeline Amid Inflation Watch

Treasury market participants are recalibrating expectations for the Federal Reserve’s next move, with rate cut bets shifting from June to September. The pricing now assumes a 25 basis point rate cut in September, pending confirmation from inflation and broader economic indicators.

Highlights:

• Market now expects first 0.25% Fed rate cut in September

• Inflation data seen as a critical factor in Fed’s rate path

• Treasury yields steady ahead of CPI report release

Honda Warns of $3 Billion Profit Hit From New Auto Tariffs

Honda became the latest multinational to signal a financial hit from the escalating US tariff regime. The Japanese automaker said it anticipates a $3 billion reduction in full-year profit due to increased duties on automobile imports. The warning sent Honda’s shares down nearly 5% in US premarket trade.

Highlights:

• Honda warns of $3 billion loss due to auto tariffs

• Shares fall nearly 5% in US premarket trading

• Tariffs beginning to weigh on corporate earnings guidance

Focus Shifts to JD.com, Under Armour Earnings Later in the Day

Investors are also eyeing quarterly earnings results from JD.com and Under Armour, both due later in the session. The earnings could offer additional cues on consumer demand and business resilience amid the evolving trade and inflation landscape.

Highlights:

• JD.com and Under Armour earnings expected later today

• Results may reflect early effects of inflation and trade volatility

• Corporate earnings remain key to market direction amid macro uncertainty