Futures Leap on U.S.–China Tariff Rollback; All Eyes on April CPI

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):

• Dow Futures: +785 pts (+1.9%)

• S&P 500 Futures: +142 pts (+2.5%)

• 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:

• U.S. Tariffs on China: Slashed from up to 145% down to 30%

• China's Levies on U.S.: Cut from 125% to 10%

• 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

1. Tariff Rollout Details: Sector-specific duty cuts could boost auto, tech, and industrial earnings.

2. CPI Surprise Risk: A hotter-than-expected print may temper equity gains and lift bond yields.

3. 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.