Market Update

A trader works on the floor of the New York Stock Exchange. Recently, stock futures dropped in overnight trading after a notable rally as investors gear up for an important inflation report set to be released on Tuesday morning.

The futures for the Dow Jones Industrial Average saw a decrease of 101 points, or 0.24%. Meanwhile, S&P 500 futures and Nasdaq 100 futures fell 0.35% and 0.44%, respectively.

According to Dow Jones’ consensus, consumer prices across the US economy are forecasted to remain at a 2.4% rate for April compared to the previous year. Excluding food and energy, core inflation is expected to hold steady at an annual rate of 2.8%.

“We’ve analyzed the data, and March showed sustained higher costs for certain companies which has contributed to rising consumer prices,” noted Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.

Just last Monday, Wall Street experienced a significant rally as the US and China reached an agreement to reduce steep tariffs for 90 days.

The blue-chip Dow jumped over 1,100 points, with the S&P 500 trimming its year-to-date losses to just 0.6%, while increasing over 3%. The Nasdaq Composite climbed 4.4%, marking the best performance for all three averages since April 9th.

Following negotiations in Switzerland over the weekend, the US and China signed a contract to lower mutual tariffs between the two nations to 10%. However, the US retained a 20% tariff on Chinese imports related to fentanyl, bringing China’s total tariff to 30%.

Treasury Secretary Scott Bescent expressed hopes to reconnect with representatives from Beijing in the coming weeks.