[Pre-Market Update New York] Futures Steady as Tariff Deferral Hopes Loom... Market Awaits Key Inflation Data

# Wall Street Awaits CPI as Stock Rally Pauses, Inflation Concerns Return May 13—The U.S. stock market's recent rally is showing signs of slowing as inflation concerns and economic slowdown fears resurface. Although a temporary U.S.-China agreement to suspend tariffs for 90 days initially lifted market sentiment, investors remain cautious with new economic data on the horizon. Before the New York market opened, S&P 500 futures dipped 0.3%, while Nasdaq 100 futures decreased by 0.2%. Dow Jones Industrial Average futures dropped 0.4%, marking the sharpest decline among the major indices. The upcoming Consumer Price Index (CPI) release, the first to capture the impact of adjusted trade tariffs, is set to be critical for the Federal Reserve's monetary policy decisions. Frederique Carrier, Head of Investment Strategy at RBC Wealth Management, commented, “Challenges persist. Despite the stronger-than-expected tariff reprieve, the U.S. still faces an average effective tariff rate above 13%.” # Tech Stocks Slow as Fundamentals Become Central On the prior trading day, the S&P 500 surged 3.3%, reaching levels seen before President Trump's “Liberation Day” tariffs announcement on April 2. The Nasdaq 100 entered a new bull market, driven by gains in major tech stocks. However, some investors are approaching the sharp rebounds with caution. Andrea Gabellone, an analyst at KBC Securities, noted, “Yesterday's rally was justified, but fundamental improvement signs are essential.” Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, downgraded his U.S. equities stance from “attractive” to “neutral,” stating, “The risk-reward balance has now evened out.” David Kostin’s team at Goldman Sachs raised their three-month S&P 500 target to 5,900 points, suggesting less than 1% upside from current levels, indicating the rebound might have reached its near-term limits. # Dollar Declines, Safe-Haven Demand Rises in Yields and Gold The Bloomberg Dollar Spot Index fell 0.2% as the dollar reversed sharp gains from the previous day, attributed by Danske Bank's Head of FX Strategy, Christopher Lomholt, to normalization following the “Liberation Day trade” correction. The euro rose 0.2% to $1.1109, and the British pound increased by 0.3% to $1.3209. The Japanese yen appreciated 0.3%, trading at ¥148.04 per dollar. U.S. Treasury yields steadied, with the 10-year yield slipping 2 basis points to 4.45%. The 2-year yield fell 3 bps after a 12 bps jump the prior session. In Europe, Germany’s 10-year bund yield increased by 2 bps to 2.67%, while the U.K.’s 10-year gilt rose by 1 bp to 4.66%. Spot gold gained 0.6%, trading at $3,255.80 per ounce, while West Texas Intermediate (WTI) crude oil increased by 0.7% to $62.40 per barrel. # Corporate Updates: UnitedHealth Warns on Earnings, Boeing Rebounds, Bayer Soars Corporate earnings announcements drew investor attention. UnitedHealth Group shares fell 10% in premarket trading after withdrawing its 2025 earnings guidance, affecting the broader healthcare sector negatively. Conversely, Boeing shares gained 1% as China lifted its one-month ban on domestic airlines receiving Boeing aircraft. Bayer surged 12% intraday after reporting stronger-than-expected earnings, driven by strong sales of new cancer and kidney disease treatments. Pinterest declined by 3.1% following reports that Google plans to launch a competing feature next week, copying some of Pinterest’s core functionalities. # Cryptocurrency Market Continues Gains: Bitcoin and Ethereum Rise In cryptocurrencies, Bitcoin (BTC) increased by 0.9% to $103,599. Ethereum (ETH) also climbed 0.6%, reaching $2,499.85. The digital asset rally reflects renewed interest in riskier investments amid a tech stock recovery. --- As markets evaluate inflation data and corporate performance, the main focus remains on determining whether current economic conditions can sustain momentum or signal a need for cautious recalibration.