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U.S. stock futures were edging up early on Tuesday. Market attention is firmly fixed on inflation data which could help decide whether the Federal Reserve will resume rate cuts, overshadowing trade developments.
Dow Jones Industrial Average futures were up 55 points, or 0.2%. S&P 500 futures were rising 0.1% and Nasdaq 100 futures were broadly flat.
The reaction was muted after President Donald Trump signed an executive order extending the deadline for higher tariffs on China until Nov. 9 on Monday. Tariffs on China were set to rise Tuesday, but Trump’s order extends the deadline for 90 days.
The likely explanation is that market moves are on hold ahead of U.S. consumer-price index data for July. Core CPI, which omits food and gas, is forecast to rise 0.3% in July — the biggest increase in six months, which would drive the rate of core inflation in the past 12 months to 3.1%, pushing it further away from the Fed’s 2% goal.
“We anticipate that firms will gradually pass through tariff-related costs, which should moderately lift core goods prices. We also expect firm prints in services ex-shelter and shelter,” wrote Vanguard economists in a research note. “However, a volatile core print is possible given divergent expectations around the direction and magnitude of vehicle prices, airfares, and hotels.”
The yield on the benchmark 10-year Treasury note stood at 4.288% early on Tuesday, broadly flat from the previous day.
Gold prices were down 0.2% at just under $3,400 an ounce in early trading, continuing a slump from the previous day after Trump clarified that there would be no tariff on bullion entering the U.S.
