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

The dollar fell and U.S. stock futures rose on Tuesday after data showed U.S. consumer inflation picked up less than expected in April, when President Donald Trump unveiled a raft of tariffs that have wreaked havoc on global supply chains and markets.

U.S. stock futures point to a lower open as investors await a key inflation report, due before the market opens.

US stocks surged to close near the highs of the session on Monday after a US-China deal to temporarily slash reciprocal tariffs offered relief to markets worried about a trade war. Wall Street notched a banner day after the US and China put tariffs on pause for 90 days,

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

Stocks traded mixed and the dollar dipped on Tuesday as the rally from the previous day faded despite cool US inflation data easing concerns about the economy.