U.S. stock index futures were down on Tuesday, pulling back after a sharp rally fueled by a U.S.-China trade truce, as investors turned their focus to a key U.S. inflation reading that could shape the outlook for monetary policy.

Stock futures rose Sunday after Treasury Secretary Scott Bessent said “substantial progress” was made in trade negotiations with Chinese officials, potentially thawing tensions kickstarted by Trump’s escalating tariff policy.

Excitement over the surprise trade-war truce between the US and China has quickly turned to caution, as the reality of a more subdued business environment than in the past returned to view. Stocks in Hong Kong slumped as much as 1.