In This Article:
US stock futures (ES=F, NQ=F, YM=F) are surging Monday morning after US and China officials agreed to significant cuts to each country's respective tariff rates in a 90-day cool-off period.
April's Consumer Price Index (CPI) is due out tomorrow, reporting month-over-month trends in US inflation rates.
President Trump vows to cut prescription drug prices by as much as 80%. In turn, pharmaceutical stocks are seeing across the board pullbacks in pre-market trading.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Welcome to Yahoo Finance's flagship show, The Morning Brief. I'm Brad Smith, alongside Madison Mills. Let's get to the three things you need to know.
First up, US stocks soaring today as investors cheer the trade deal between the US and China. The US will cut the tariff rate on Chinese goods to 30%, and China will cut US tariffs to 10% for a 90-day period. Temporary truce sending stocks on a tear with all magnificent seven members moving sharply higher. Across asset classes, the dollar is also moving to the upside. Meantime, treasuries and gold taking a bit of a tumble.
Plus, investors also awaiting the April inflation report, which will show the immediate impacts of the liberation day tariffs. CPI categories that are China import intensive, such as toys, shoes, and apparel may see some modest inflation. But overall, the CPI report is expected to come in closer to the Federal Reserve's 2% target.
And pharmaceutical stocks taking a hit today as President Trump says he plans to order a cut in prescription drug costs that could go as high as 80%. A potential decrease in prescription drug prices could have a significant impact on the industry's profits, particularly for companies that depend heavily on US sales. Could face lawsuits and resistance from the industry and lawmakers. President will sign the executive order this morning.
