U.S. stock futures surged Monday as Washington and Beijing agreed to dramatically lower mutual tariffs—stoking hopes of eased trade tensions—and ahead of this week’s critical inflation print and a pharma-pricing executive order.
1. Futures Rally on Trade Breakthrough
By 04:37 ET (08:37 GMT):
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Dow Futures: +785 pts (+1.9%)
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S&P 500 Futures: +142 pts (+2.5%)
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Nasdaq 100 Futures: +689 pts (+3.4%)
After a muted finish last week—markets braced for U.S.–China meetings in Switzerland—Monday’s announcement of a 90-day tariff truce propelled a swift rotation back into equities, especially cyclical and tech names poised to benefit from lower input costs.
2. Key Tariff Changes Agreed
In a rare joint statement, both sides committed to:
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U.S. Tariffs on China: Slashed from up to 145% down to 30%
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China’s Levies on U.S.: Cut from 125% to 10%
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90-Day Pause: No new tariffs, with working-level talks to follow
Treasury Secretary Scott Bessent emphasized that “neither side wanted a decoupling,” signaling a pivot toward stability. Investors—worried that escalating levies could derail global growth—welcomed this de-escalation as a shield for corporate margins.
3. CPI’s Crucial Role This Week
Markets will next focus on April’s Consumer Price Index, due Wednesday morning, to gauge whether tariff-driven cost pressures are filtering through to headline inflation. Economists forecast a 2.4% year-over-year increase, matching March’s rate—but any upside surprise could complicate the Fed’s “wait-and-see” stance.
To keep tabs on this and other major data releases—including the CPI report—use the Economics Calendar API, which lists exact dates and consensus forecasts in real time.
What to Watch
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Tariff Rollout Details: Sector-specific duty cuts could boost auto, tech, and industrial earnings.
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CPI Surprise Risk: A hotter-than-expected print may temper equity gains and lift bond yields.
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Pharma Stocks: Pharmaceutical names could tumble further once Trump’s drug-pricing order details emerge.
By combining real-time trade policy updates with precise economic-calendar alerts, investors can stay positioned for both the upside relief rally and the upside-risk in inflation data this week.
