U.S. stock index futures moved higher on Tuesday after a lower-than-expected inflation report boosted expectations that the Federal Reserve was on track to lower borrowing costs this year. A Labor Department report showed April consumer price inflation rose 0.

U.S. stocks are mixed after overall April inflation eased but a narrower measure stripping out volatile sectors that the Fed eyes remained unchanged.

Markets were more subdued ahead of the inflation report and following Monday’s rally as the U.S. and China slashed levies on each other’s exports.