FX.co ★ US Futures Turn Higher after Soft CPI Print

U.S. stock futures experienced an uptick on Wednesday following inflation data that proved to be less severe than anticipated, raising optimism for potential rate cuts. Futures for the S&P 500 increased by 0.4%, while the Nasdaq 100 saw a rise of 0.5%, and Dow futures surged by 130 points. The Consumer Price Index (CPI) showed a 2.4% increase in May, falling short of the projected 2.5%, with monthly inflation ticking up a mere 0.1%, primarily due to shelter costs. This report alleviated fears regarding the potential resurgence of inflation. Additionally, market sentiment improved with advancements in U.S.-China trade negotiations. President Trump announced that China agreed to supply rare earths to the U.S. in advance as a part of their deal, describing the bilateral relationship as “excellent.” However, the agreement still awaits final approval from President Xi. The U.S. plans to impose tariffs of 55% compared to China's 10%. Prominent technology stocks such as Nvidia, Microsoft, Apple, Amazon, and Meta rose between 0.4% and 0.7% in pre-market trading. Tesla's shares soared nearly 3% after Elon Musk softened his previous criticisms of Trump, adding further stabilization to the markets.