US-China trade truce euphoria is giving way to worry over economic slowdown in the wait for the latest US consumer inflation report

US stock futures are trading marginally in the red after a strong rally on Monday, marking their best single-day gain since April 9, which was the day US President Donald Trump announced a pause to his reciprocal tariff program for 90 days.

Stock futures fell in early Tuesday following a big rally, as investors look ahead to a key inflation report Tuesday morning. Futures on the Dow Jones Industrial Average inched down 108 points, or 0.25%. S&P 500 futures and Nasdaq 100 futures fell 0.4% and 0.46%, respectively.

US stock futures surged even higher on Monday after the US and China said they have agreed to slash most tariffs for 90 days while further trade talks take place. Stocks were already making gains over after the US said it had made "substantial progress" in weekend trade talks with China,

Asia stock markets traded higher on Monday following substantial progress in U.S.-China trade talks on Sunday. Traders awaited further details from the negotiations, which were expected to be announced on Monday.

Investors head into a busy week for economic data watching if leadership in the U.S. stock market could be moving away from defensive equity areas that indicates greater appetite for risk.

Markets are poised for a strong start following the understanding between India and Pakistan, while trade talks between the US and China add to the momentum

Markets were more subdued ahead of the inflation report and following Monday’s rally as the U.S. and China slashed levies on each other’s exports.