US STOCKS-US stock futures fall as optimism wanes ahead of key inflation test

By Shashwat Chauhan and Pranav Kashyap

May 13 (Reuters) - U.S. stock index futures were lower on Tuesday after a spirited rally sparked by Washington's temporary trade truce with China subsided and investors shifted focus to a crucial U.S. inflation report that will likely shape the monetary policy path.

April consumer price inflation data is due to be released at 8:30 a.m. ET, with economists polled by Reuters expecting a 0.3% monthly rise and the annual rate holding steady at 2.4%.

"Today's inflation data is highly anticipated, as higher figures could further diminish the outlook for additional rate cuts — potentially leading to no cuts at all by 2025," said Jochen Stanzl, chief market analyst at CMC Markets.

Traders currently expect at least two 25-basis-point rate reductions by the year-end, with the first cut expected in September, according to data compiled by LSEG.

A number of U.S. Federal Reserve officials are slated to speak this week, including Chair Jerome Powell on Thursday.

Relief swept through Wall Street on Monday as all three major U.S. indexes surged, with the S&P 500 reaching heights not seen since March 5. The upswing came in the wake of the U.S. and China agreeing to ease their tough reciprocal tariffs, signaling a cooperative effort to prevent a global economic recession.

The U.S. will pause the extra tariffs it imposed on Chinese imports to 30% from 145% for three months, while Chinese duties on U.S. imports will fall to 10% from 125% for the same period.

A White House executive order said the U.S. would cut the low value "de minimis" tariff on China shipments.

Following the tariff truce, Goldman Sachs became the first major brokerage to lower its probability of a U.S. recession.

The three major indexes have successfully rebounded from the losses logged since April 2, known as "Liberation Day", when President Donald Trump announced reciprocal tariffs affecting nearly all U.S. trade partners.

A 90-day pause announced on April 9 for countries other than China, along with solid earnings reports and a limited U.S.-UK trade agreement last week, helped the S&P 500 and tech-heavy Nasdaq regain lost ground.

Still, the S&P 500 remains nearly 5% below its February record high.

Weighing on Dow futures, UnitedHealth UNH.N fell 5.5% after the insurance bellwether suspended its annual forecast and its CEO stepped down.

At 06:51 a.m. ET, Dow E-minis YMcv1 were down 176 points, or 0.41%, S&P 500 E-minis EScv1 were down 14.75 points, or 0.25%, and Nasdaq 100 E-minis NQcv1 were down 52.25 points, or 0.25%.

Most megacap and growth stocks inched lower after rallying in the previous session, with Tesla TSLA.O down about 1% in premarket trading, while Nvidia NVDA.O was flat.

Crypto exchange operator Coinbase Global COIN.O, which is slated to join the S&P 500 on May 19, was among the early movers, jumping 9.6%.

As earnings season draws to a close, with more than 90% of S&P 500 companies having reported earnings, investors now look forward to results from retail giant Walmart WMT.N, expected later this week.

Trump is on a four-day visit to the Gulf region, arriving in Saudi Arabia on Tuesday, and investors will now look to see if a potential trade deal is in the offing.