US Stock Futures Lower Amid Trade Deal and Inflation Data

U.S. stock futures showed declines as the market absorbed news of a tentative trade agreement between the U.S. and China, coupled with anticipation for critical inflation data. The trade deal, which followed discussions in London, suggests a potential easing of trade tensions, with the U.S. considering the rollback of some export restrictions on advanced technology in return for China's commitment to releasing more rare earths.

Adding to the trade landscape, the Trump administration is reportedly close to finalizing a deal with Mexico to lift the 50% tariff on specific steel imports. Separately, an appeals court agreed to expedite the hearing regarding President Trump’s tariffs, setting oral arguments for July 31.

On the economic front, investors are keenly awaiting May's inflation data. Economists predict a 0.2% monthly increase, which would result in an annual increase of 2.4%. Treasury Secretary Bessent is also scheduled to testify before Congress. Futures tied to the Dow, S&P 500, and Nasdaq all experienced slight declines.

The deal includes the U.S. rolling back some export restrictions on advanced technology in exchange for China's releasing more rare earths.

Economists anticipate a 0.2% month-over-month increase, leading to a 2.4% annual increase.

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