U.S. stock futures were flat on Tuesday evening after the S&P 500 and Nasdaq Composite climbed higher, buoyed by cooling inflation and renewed hopes surrounding the U.S.-China trade detente.

Futures Overview (as of 19:56 ET)

• S&P 500 Futures: +0.1% at 5,908.0

• Nasdaq 100 Futures: Unchanged at 21,290.50

• Dow Jones Futures: +0.1% at 42,265.0

Factors Driving Market Movement on Tuesday

S&P 500 +0.7% | Nasdaq +1.6%

The major benchmarks took flight after the latest CPI data indicated inflation increasing at a slower pace than anticipated:

• Headline CPI (YoY): 2.3% (vs. 2.4% expected)

• Month-over-Month CPI: 0.2% (vs. 0.3% expected)

• Core CPI (MoM): 0.2% (also under 0.3% consensus)

This offered support to rate-cut expectations, reinforcing beliefs that Federal Reserve policy may ease later in 2025.

Dow -0.6% | UnitedHealth Group Drops 18%

Meanwhile, the Dow was hindered by UnitedHealth Group (NYSE:UNH), which tumbled nearly 18% following:

• Suspension of its full-year financial forecast

• CEO Andrew Witty announcing his resignation amid rising healthcare costs.

Impact from U.S.-China Trade Developments

Market gains were also bolstered by a 90-day tariff truce between the U.S. and China. The agreement reduces:

• U.S. tariffs on Chinese goods from 145% to 30%

• Chinese tariffs on U.S. goods down to 10% from 125%

This situation continues to drive market optimism following Monday’s rally.

Investor Considerations

While futures appeared stable Tuesday night, favorable macro indicators – such as slower inflation, trade relief, and potential Fed easing – might bolster equity performance shortly.

For investors managing CPI-related sectors like consumer discretionary and tech, using real-time analysis tools will provide clarity on sector adjustments.

Upcoming Events

• Retail sales data and remarks from Fed officials may offer insights into consumer strength and policy direction.

• Attention will stay on whether tariff progress becomes a permanent resolution or if new tensions arise.

Despite stable futures, the overall sentiment remains cautiously optimistic.