US stock futures slid on Tuesday, signaling a pause in the recent rally amid growing warnings that investor relief over the thaw in trade tensions and easing inflation may be misplaced.
S&P 500 futures (ES=F) dropped 0.3% on the heels of a sixth straight day of gains for the broad benchmark. Dow Jones Industrial Average futures (YM=F) slipped roughly 0.2%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) backed off 0.4%.
Since the US and China struck a deal to temporarily roll back tariffs last week, markets have been shaking off fears of a trade war and enjoying a rally.
Concerns are growing, however, including from JPMorgan CEO Jamie Dimond, that investors’ confidence in easing trade tensions could be overblown. Indeed, tariff levels remain elevated and a growing chorus of Federal Reserve officials say they see interest-rate cuts on hold until September amid trade uncertainty.
Read more: The latest on Trump’s tariffs
Tariffs have played a prominent role this earnings season with Walmart (WMT) becoming the latest retail giant to warn that rising prices are coming, prompting pushback from the president.
The impact of tariff concerns on consumers will continue to be in focus when Home Depot (HD) reports earnings on Tuesday. Investors will be looking for signs of waning consumer activity amid expectations of stiffening prices.
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