June S&P 500 E-Mini futures (ESM25) are down -2.20%, and June Nasdaq 100 E-Mini futures (NQM25) are down -2.33% this morning, pointing to a sharp pullback on Wall Street after yesterday’s historic rally, while investors brace for the release of crucial U.S. inflation data.
After $10 trillion was erased from global equity markets, U.S. President Donald Trump announced a 90-day pause on most of his sweeping reciprocal tariffs. Countries affected by the higher reciprocal duties that took effect Wednesday will now be taxed at the earlier 10% baseline rate applied to other nations, except for China, which remains subject to a 125% tariff. This sparked a massive rally on Wall Street, with the benchmark S&P 500 notching its largest daily gain since 2008 and the tech-heavy Nasdaq 100 posting its biggest one-day surge since 2001. Still, numerous strategists cautioned investors against buying the dip in equities due to the risks that lie ahead.
