U.S. stock futures rebounded on Tuesday following Monday’s decline. Futures of major benchmark indices were lower.

The Consumer Price Index for All Urban Consumers increased 0.2% on a seasonally adjusted basis in July, after rising 0.3% in June, the U.S. Bureau of Labor Statistics reported today.

Over the last 12 months, the all-items index increased 2.7% before seasonal adjustment, below the consensus view of 2.9%.

President Donald Trump signed an executive order on Monday, extending the suspension of heightened tariffs on China for another 90 days, keeping the current 10% reciprocal tariff in place until Nov. 10, 2025.

Meanwhile, Chinese authorities directed local firms to avoid using Nvidia Corp.‘s NVDA H20 chips, citing security reasons.

The 10-year Treasury bond yielded 4.28% and the two-year bond was at 3.77%. The CME Group's FedWatch tool‘s projections show markets pricing an 84.4% likelihood of the Federal Reserve cutting the current interest rates for the Sept. 17 decision.

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.42% at $638.57, while the QQQ advanced 0.540% to $575.96, according to Benzinga Pro data.

Cues From Last Session:

Energy, information technology, and real estate stocks recorded the biggest losses on Monday, while consumer staples and consumer discretionary stocks bucked the overall market trend, closing the session higher.

U.S. stocks settled lower on Monday ahead of key inflation data.

The major indices recorded gains last week, with the Dow surging about 1.4% and the S&P 500 adding 2.4% last week. The Nasdaq recorded a 3.9% surge during the week.

Later in the week, attention will shift to Friday's high-profile meeting between President Donald Trump and Russian President Vladimir Putin in Alaska.

Monday.com Ltd. MNDY shares dipped around 30% on Monday after it posted second-quarter results. International Money Express Inc. IMXI shares jumped more than 60% after Western Union announced plans to acquire Intermex for $500 million.

The Dow Jones index ended 201 points or 0.45% lower at 43,975.09, whereas the S&P 500 index fell 0.25% to 6,373.45. Nasdaq Composite declined 0.30% to 21,385.40, and the small-cap gauge, Russell 2000, tumbled 0.086% to end at 2,216.51.

Insights From Analysts:

According to Jeff Buchbinder, the chief equity strategist at LPL Financial, “The stock market’s ascent and low volatility tell us stocks are absorbing tariffs well.”

He explained that another way to demonstrate the market’s comfort is with an analysis of how stocks with the most perceived tariff risk are performing relative to those stocks with the least amount of perceived tariff exposure.

“Our friends at Goldman Sachs created a basket of stocks they believe are most immune to tariffs and another basket of stocks most at risk from tariffs. Somewhat counterintuitively, stocks most at risk from tariffs have performed much better since the so-called ‘Liberation Day’ tariff announcements back on April 2,” he stated.

The note stated that experts have been pleasantly surprised by how well stocks have handled the sharp increase in tariffs. Since the market low from the early April tariff scare, the S&P 500 Index has gained more than 28%. The note highlighted several reasons for the impressive rally in the face of these headwinds:

Meanwhile, Ryan Detrick, the chief market strategist at Carson Research, stated in an X post that "AI Is The Real Reason Why the U.S. Economy Isn't in Recession."

He explained that without AI "growth would be near zero," as the AI spending, driven by Big Tech, has overtaken consumers as the biggest boost to U.S. GDP.

See Also: How to Trade Futures

Upcoming Economic Data

Here's what investors will be keeping an eye on Tuesday;

Stocks In Focus:

Commodities, Gold, And Global Equity Markets:

Crude oil futures were trading higher in the early New York session by 0.05% to hover around $63.99 per barrel.

Gold Spot US Dollar rose 0.14% to hover around $3,347.58 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was unchanged at the 98.5230 level.

Asian markets were mostly higher on Tuesday, except South Korea's Kospi and India's S&P BSE Sensex indices. Australia's ASX 200, China’s CSI 300, Hong Kong's Hang Seng, and Japan's Nikkei 225 indices rose. European markets were mixed in early trade.

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