Markets Cool Off After Trade Truce Frenzy

​After roaring to life on Monday, U.S. stock futures slipped Tuesday morning—even as Wall Street continues to cheer the breakthrough U.S.–China trade truce.

The deal, which temporarily slashes U.S. tariffs on Chinese goods from 145% to 30%, and China’s retaliatory tariffs from 125% to 10%, sparked a massive rally the previous day. But futures began to pull back slightly: Dow futures dipped 0.2%, the Nasdaq fell 0.4%, and the S&P 500 slipped 0.3%.

The 90-day tariff rollback, effective Wednesday, gives both countries breathing room to negotiate a more permanent trade agreement. Investors largely embraced the pause, especially in Big Tech, which led Monday’s surge.

Still, traders are shifting their attention to inflation. Tuesday’s release of the Consumer Price Index (CPI) will be the first major test of how Trump’s tariffs are impacting prices. With CPI expected to tick higher, the market is holding its breath.

​Despite the dip in futures, the underlying tone remains optimistic. The truce may be temporary, but for now, it’s a welcome change from the chaos—and the market’s taking a cautious victory lap.