New York, N.Y. — Stock futures declined during evening trading Tuesday as investors awaited clarity on the latest trade negotiations between the United States and China, along with May’s consumer inflation data.

Futures linked to the S&P 500 fell by 0.16%, while Nasdaq 100 futures decreased by 0.17%. The Dow Jones Industrial Average futures saw a loss of 55 points, reflecting a 0.14% dip.

Recent discussions between U.S. and Chinese officials have been a focal point for market participants eager for signs of progress in trade relations. After two days of negotiations in London, U.S. Commerce Secretary Howard Lutnick announced that he and Trade Representative Jamieson Greer would return to Washington, D.C., to secure President Trump’s approval for the proposed trade framework. Meanwhile, Treasury Secretary Scott Bessent is scheduled to leave the negotiations to testify before Congress on Wednesday.

Investors remain sensitive to trade-related uncertainties, particularly given prior agreements to pause high tariffs on each other earlier this year. A comprehensive trade agreement still has not materialized, maintaining a level of apprehension in the markets.

On Tuesday, the S&P 500 advanced approximately 0.6%, marking its third consecutive positive session and leaving the index less than 2% away from its February peak. The Nasdaq Composite also climbed by 0.6%, and the Dow recorded a modest gain of 0.3%.

Despite the recent upward trend, analysts caution that fears around tariffs and increasing bond yields could weigh down the market. Deutsche Bank’s group chief economist David Folkerts-Landau noted that the current market rebound might embolden the Trump administration to adopt a more aggressive stance on tariffs, potentially igniting turmoil reminiscent of earlier disputes this year.

Additionally, he raised concerns over rising long-term bond yields, which could heighten fiscal worries around burgeoning deficits in numerous major economies. Folkerts-Landau suggested that the economic landscape in 2025 might be accelerating paths to unsustainable debt, hinting at an impending financial reckoning.

As the week progresses, investors will be looking closely at the Bureau of Labor Statistics, which is set to release May’s consumer price index. Economists expect a 0.2% month-to-month rise, with a total annual increase of 2.4%. A significant jump in inflation could unsettle investors already concerned about rising prices.

Sam Millette, a fixed-income director at Commonwealth Financial Network, remarked that the report is unlikely to trigger immediate changes in the Federal Reserve’s interest rate strategy, but the market will remain alert for any unexpected data.

On the corporate front, traders are gearing up for earnings reports from companies like Chewy and Oracle, which could further influence market sentiment.