US stock futures wavered after investor optimism largely persisted for another day despite growing warnings that relief over trade developments could be short-lived.
Futures attached to the Dow Jones Industrial Average (YM=F) slipped 0.2%. Futures attached to the benchmark S&P 500 (ES=F) dropped 0.4% while Nasdaq 100 futures (NQ=F) dropped 0.5%.
On Monday, stocks ticked up despite the US losing its last AAA credit rating on Friday. Since the US and China struck a deal to temporarily roll back tariffs last week, Wall Street has been shaking off fears of a trade war and enjoying a rally.
Concerns are growing, however, including from JPMorgan’s 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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