U.S. stock futures have limited volatility, as investors focus on the upcoming July Consumer Price Index (CPI) report.

The S & P 500, Dow Jones Industrial Average and Nasdaq Futures are all close to flat after closing lower in the previous trading day. Bitcoin prices fell back to about $118,000, the 10-year U.S. bond yield rate remained unchanged, and gold and oil futures showed slight declines.

The CPI report is expected to show an increase in inflation, and the market expects the CPI in July to show an increase in inflation again.

According to the Wall Street Journal and Dow Jones News Economic Consensus, CPI is expected to rise 2.8% from the previous year, up from 2.7% in June. Core CPI is expected to rise from 2.9% to 3.1%. The report came days after President Trump fired Erika McEntarfer, director of the Bureau of Labor Statistics, after the July employment report showed a slowdown in hiring.

The United States extends the Sino-US trade truce for 90 days. The White House announced on Monday that it would extend the Sino-US trade truce for 90 days, avoiding a sharp tariff increase originally scheduled to start on Tuesday.

If not extended, tariffs on China products will rise to 145%. The two sides have reduced each other's tariffs, but remain at high levels, and lifted restrictions on rare earth minerals and U.S. -made chips.

Musk threatened to file a lawsuit against Apple, and Elon Musk threatened to file an antitrust lawsuit against Apple, accusing Apple of unfairly treating his social media network X and Grok AI chat bots in the App Store rankings.

Musk said on its X social media network that xAI will take legal action against Apple's alleged monopolistic behavior and accused Apple of refusing to include X and Grok among its must-have apps.

C3.ai's share price has attracted attention due to weak revenue forecasts. C3.ai's share price has attracted attention after plunging more than 25% on Monday. The AI software provider released preliminary earnings reports showing revenue well below the company's expectations.

C3.ai expects revenue for the first quarter of fiscal 2026 to be US$70.2 million to US$70.4 million, down from US$87.2 million in the same period last year. The company had expected revenue of $100 million to $109 million in May. C3.ai's share price has fallen by more than half since the beginning of the year and is currently up slightly in pre-market trading.

Investors responded lukewarm to Trump's policies. Although Trump extended the Sino-US tariff truce, major U.S. stock indexes closed lower on Monday.

Investors seem accustomed to Trump's policy reversals, so their reaction to his latest trade decisions has been muted. Japan's Nikkei 225 index and Australia's S&P/ASX 200 index hit new highs on Tuesday, with the latter boosted by a rate cut by the Reserve Bank of Australia.

European defense stocks may rise again, and according to Ben Heelan, head of European industrial research at Bank of America, some investors who have been cautious about defense stocks in the past may be changing their minds.

This trend could give new upward momentum to European defense stocks.