U.S. stock index futures fell Tuesday night after a federal appeals court ruled that President Donald Trump's tariffs can remain in effect, diminishing hopes that a legal challenge could block these levies.
Futures changed direction after briefly rising when U.S. and Chinese officials stated that a consensus on a trade framework had been reached during talks in London. However, no further details were provided about this framework, while officials also gave few hints about restrictions on chips and exports of rare earth minerals.
Attention now fully turns to obtaining more clues about the trade framework between the U.S. and China, while key consumer price index data on inflation will be released later on Wednesday.
S&P 500 futures fell 0.2% to 6,034.0 points, while Nasdaq 100 futures dropped 0.2% to 21,918.0 points at 8:52 PM. Dow Jones futures fell 0.2% to 42,838.0 points.
Appeals court rules that Trump's tariffs can continue
A federal appeals court ruled that Trump's trade tariffs, specifically his 'release day' levies, can remain in effect while the court reviews a previous order blocking the tariffs.
The ruling allows one of Trump's flagship economic policies to remain, announcing more uncertainty in the market about the economic impact of the tariffs.
A series of recent economic readings showed a steady cooling in the U.S. economy, as consumers and businesses worry about Trump's tariffs. The president's tendency to change his mind about his tariff plans has also kept markets largely uncertain about their impact.
