Morning Juice – US Session Prep (13th May)

Sentiment
The Wall Street stock rally was set to halt as optimism over tariff cuts between the United States and China gave way to lingering concerns about inflation and economic growth.

US futures indicated a drop in the S&P 500 and Nasdaq 100. The appetite for safer assets returned, with Treasury yields falling and gold prices rising. The dollar weakened.

Investors are taking a breather after the 90-day tariff moratorium announced on Monday sent risk assets soaring and propelled the Nasdaq back into a bull market. They’ll be looking for clues on the trajectory of Federal Reserve interest rates in the US inflation report, which is due later in the day and could show tariff-related costs.

Optimism about the US-China détente caused the S&P 500 Index to close 3.3% higher Monday, exceeding its level when President Donald Trump announced sweeping tariffs on April 2. A surge in big tech shares has returned the Nasdaq 100 to a bull market, just about a month after it fell 20% from its previous record high.

Docket
08:30 ET
US CPI for April
YoY – Forecast: 2.4% | Prior: 2.4% | Range: 2.5% / 2.2%
MoM – Forecast: 0.3% | Prior: -0.1% | Range: 0.6% / 0%
Core YoY – Forecast: 2.8% | Prior: 2.8% | Range: 3% / 2.7%
Core MoM – Forecast: 0.3% | Prior: 0.1% | Range: 0.6% / 0.1%

11:30 ET
US sells $48 bln 52-Week Bills

Speakers
09:45 ET
Trump participates in a Saudi-US Investment Forum.

10:10 ET
BoE’s Governor Bailey BOE Governor Andrew Bailey speaks in a fireside chat with ECB’s Knot at the Foreign Bankers Association AGM.

13:15 ET
Trump participates in a Saudi State Dinner.

Good luck!