Markets Cool After Winning Streak Fueled by Trade Truce

​After a strong multi-day run, U.S. stock futures edged lower early Thursday as investors took a breather following the Trump administration’s temporary truce with China on tariffs. The S&P 500 futures slipped 0.27%, Nasdaq 100 dropped 0.22%, and Dow futures lost 0.44%, signaling some hesitation after optimism had driven the indexes higher all week.

The S&P 500 notched a third straight day of gains Wednesday, and the Nasdaq Composite closed out its sixth consecutive win—propelled by cooling inflation data and relief over a halt in the tariff war. The market has been buoyed by signs that economic pressure from the trade battle may not be as harsh as feared.

Tech stocks have led the charge, with Nvidia and Tesla each up over 16% for the week, and Meta, Amazon, and Alphabet not far behind. The Nasdaq is now up 6.8% week-to-date, outperforming the S&P’s 4.1% gain and the Dow’s 1.9% rise.

Sentiment also got a lift from Tuesday’s cooler-than-expected inflation report—headline CPI rose just 0.2% in April, slightly below the 0.3% forecast. But with producer price index, retail sales, and industrial production numbers due Thursday morning, investors are bracing for the next round of economic data.

In after-hours trading, Foot Locker soared 67% after reports that Dick’s Sporting Goods is close to acquiring the company for $2.3 billion. Meanwhile, UnitedHealth slid 8% following a report that the company is under investigation by the Justice Department—news the insurer denied receiving official notice about.

​Bottom line: Markets are pausing after a rally fueled by easing trade tensions and soft inflation data. With more economic indicators on deck, investors are staying alert for what might come next—especially with volatility still lurking beneath the surface.