US stock rally pauses as investors weigh data, trade

US stock rally pauses as investors weigh data, trade
Inflation stats are a key metric in focus Tuesday.
MAY 13, 2025
By  Bloomberg

by Margaryta Kirakosian and Winnie Hsu

US stock futures paused their rally as investors focused on a key inflation report and lingering economic concerns, even after the trade truce between the US and China.

Futures contracts for the S&P 500 and the Nasdaq 100 both slipped around 0.3%. Europe’s Stoxx 600 index rose 0.2%, climbing for a fourth day. Treasuries edged higher, while the dollar fell.

Uncertainties remain elevated despite markets’ enthusiastic reaction to the cuts in tariffs announced Monday. Investors will be watching the US inflation report for April — potentially the first to show tariff-related costs.

“The challenges are not over,” said Frederique Carrier, investment strategy head at RBC Wealth Management. “The de-escalation was a lot stronger than even the best hopes, but you have to remember that the US economy still faces average of effective tariffs of more than 13%.”

While most Asian markets gained Tuesday, the Hang Seng China Enterprises Index dropped as much as 1.9%. The CSI 300 Index was little changed in its first reaction to the trade truce. 

Optimism over the US-China talks saw the S&P 500 Index close 3.3% higher Monday, above where it was when President Donald Trump announced sweeping tariffs on April 2. A surge in big tech shares put the Nasdaq 100 back into a bull market just about a month after it plunged 20% from a previous record high.

The dollar weakened against all its Group-of-10 peers, retracing some of the gains it made on Monday. The Bloomberg Dollar Spot Index slipped 0.2%. The yen and Swiss franc led gains. In Asia, the offshore yuan climbed to a six-month high after the central bank fixed the currency stronger.

Treasuries also reversed some of Monday’s move. The policy-sensitive US two-year yield fell three basis points after surging 12 basis points in New York amid speculation the tariff truce would bolster the world’s biggest economy.

Gold edged higher after a selloff Monday. Oil paused a three-day gain as attention moved away from the trade war and to the Middle East.

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 rose 0.2% as of 8:35 a.m. London time
  • S&P 500 futures fell 0.3%
  • Nasdaq 100 futures fell 0.4%
  • Futures on the Dow Jones Industrial Average fell 0.3%
  • The MSCI Asia Pacific Index rose 0.2%
  • The MSCI Emerging Markets Index fell 0.5%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2%
  • The euro rose 0.3% to $1.1117
  • The Japanese yen rose 0.4% to 147.93 per dollar
  • The offshore yuan was little changed at 7.1969 per dollar
  • The British pound rose 0.2% to $1.3204

Cryptocurrencies

  • Bitcoin was little changed at $102,769.61
  • Ether fell 0.6% to $2,469.89

Bonds

  • The yield on 10-year Treasuries was little changed at 4.46%
  • Germany’s 10-year yield advanced three basis points to 2.68%
  • Britain’s 10-year yield advanced two basis points to 4.66%

Commodities

  • Brent crude rose 0.1% to $65.05 a barrel
  • Spot gold rose 0.6% to $3,256.54 an ounce

This story was produced with the assistance of Bloomberg Automation.

 

Copyright Bloomberg News

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