Stock market today opened on a cautious note, with S&P 500 futures slipping slightly, as investors weighed the growing pressure from U.S. tariffs and mixed signals from major retailers. In contrast to Walmart’s recent warning that tariffs would likely increase prices for American consumers, Home Depot announced it will not raise prices, a move that surprised the market and helped push its stock higher in premarket trading. Despite this positive move, worries about inflation and the broader impact of tariffs continue to cloud market sentiment. With upcoming earnings from Target, Lowe’s, and TJX, and global central banks responding with rate cuts, the market remains on edge.

As of early May 20, the key U.S. indices are showing modest gains:


While all three indexes are up slightly, the remains around .

and are leading early momentum, while slips following recent gains.

While Walmart has sounded the alarm about rising costs, Home Depot has taken a different path. The home-improvement giant is actively working with its suppliers to avoid passing extra costs on to customers. It’s also been shifting its production away from China, a key move aimed at softening the blow of U.S. tariffs. This strategy, so far, seems to be paying off — Home Depot’s quarterly earnings exceeded Wall Street expectations, and its shares moved up in early trading.

Tariffs remain a wildcard. For now, the actual impact on inflation has been muted, but economists say that might change soon. The White House’s import taxes are expected to push price pressures higher in the coming months. If more retailers follow Walmart’s lead and raise prices, that could squeeze household budgets and shift consumer spending habits heading into the second half of the year. JPMorgan CEO Jamie Dimon added to the cautious tone on Monday, warning that the stock market could face a downturn as companies begin to feel the effects of increased input costs. Higher expenses for raw materials and supplies, tied to ongoing trade tensions and tariffs, could hurt corporate earnings and stock performance. His comments came just days after Moody’s Ratings downgraded the U.S. government’s credit rating from triple-A, another blow to investor confidence. As trade tensions weigh on global economic growth, central banks around the world are stepping in. On Tuesday, Australia’s central bank cut interest rates to a two-year low, aiming to support its economy. In China, major banks lowered key lending rates after the People’s Bank of China signaled further easing. These moves show how seriously global policymakers are taking the threat of prolonged trade friction and its spillover effects. Markets showed mixed movement. U.S. stock futures were slightly down following a six-day winning streak for the S&P 500. Meanwhile, 10-year Treasury yields dipped slightly, settling at 4.473%, as investors digested concerns about America’s debt and fiscal stability. Long-term yields remain high, reflecting lingering anxiety over Washington’s budget issues. Chinese battery giant CATL made a strong debut on the Hong Kong stock exchange, with shares jumping 16%. This marks the biggest equity offering globally in 2025 so far, signaling strong demand for new tech investments even amid market uncertainty. Overseas, Hong Kong’s Hang Seng Index rose 1.5%, with gains also seen in Australian and European indexes, helped by central bank support and earnings optimism.


S&P 500 futures dipped due to investor concerns over tariffs, inflation, and rising costs for companies.

Q2: What did Home Depot say about tariffs?
Home Depot plans to keep prices stable by shifting production away from China and working with suppliers.