Following an historic summit between President Donald Trump and North Korean leader Kim Jong Un, stocks may turn in a lackluster performance in early trading. The major index futures are currently pointing to a roughly flat open for the , with the Dow futures down by 4 points.
The lack of momentum on Wall Street comes after Trump and Kim signed a joint statement pledging to work together to "build a lasting and stable peace regime on the Korean Peninsula."
The statement said Kim reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula, while Trump committed to provide security guarantees to North Korea.
The U.S. and North Korea also committed to hold follow-on negotiations led by the Secretary of State Mike Pompeo and a relevant high-level North Korean official.
"I think our whole relationship with North Korea and the Korean peninsula is going to be a very much different situation than it has in the past," Trump said at the signing ceremony.
"We both want to do something, we both are going to do something, and we have developed a very special bond," he added. "This is going to lead to more and more and more."
On the U.S. economic front, a report released by the Labor Department showed another modest increase in consumer prices in the U.S. in the month of May.
The Labor Department said its consumer price index rose by 0.2 percent in May, matching the increase seen in April as well as economist estimates.
Excluding food and energy prices, core consumer prices still increased by 0.2 percent in May after inching up by 0.1 percent in April. The core price growth also matched expectations.
Overall trading activity may remain somewhat subdued, however, as traders look ahead to monetary policy announcements by the Federal Reserve and the European Central Bank.
The Fed is widely expected to raise interest rates by 25 basis points, while the ECB has indicated its meeting will be used to discuss ending its bond purchasing program.
After initially showing a lack of direction, stocks moved modestly higher over the course of the trading session on Monday. With the upward gains on the day, the Dow and the S&P 500 reached their best closing levels in three months.
The major averages pulled back going into the close but managed to end the day in positive territory. The Dow inched up 5.78 points or less than a tenth of a percent to 25,322.31, the Nasdaq rose 14.41 points or 0.2 percent to 7,659.93 and the S&P 500 edged up 2.97 points or 0.1 percent to 2,782.00.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index rose by 0.3 percent, while Hong Kong's Hang Seng Index crept up by 0.1 percent.
Meanwhile, the major European markets have shown modest moves to the downside on the day. While the German DAX Index has edged down by 0.1 percent, the French CAC 40 Index is down by 0.2 percent and the U.K.'s FTSE 100 Index is down by 0.3 percent.
In commodities trading, crude oil futures are slipping $0.09 to $66.01 a barrel after rising $0.36 to $66.10 a barrel on Monday. Meanwhile, after edging up $0.50 to $1,303.20 an ounce in the previous session, gold futures are falling $4.10 to $1,299.10 an ounce.
On the currency front, the U.S. dollar is trading at 110.27 yen compared to the 110.03 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1795 compared to yesterday's $1.1784.
by P2PNews Staff Writer