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US stock futures picked up on Wednesday as investors digested a softer-than-expected inflation reading and assessed a US-China plan to salvage their trade truce.
Futures on the S&P 500 (ES=F) rose about 0.5% and those on the Dow Jones Industrial Average (YM=F) 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also rose about 0.5%.
The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) have risen to within striking distance of record closing highs amid optimism for potential trade deals.
Markets had been giving a muted response to a US-China framework agreement to get the Geneva tariff truce back on track. Trump and other US officials indicated the deal should resolve issues between the two countries on rare earths and magnets. Trump said Wednesday that the US will allow Chinese students in US colleges, a sticking point that had emerged in the weeks following the countries' mid-May deal in Geneva.
But futures moved higher after a better-than-expected reading of the May Consumer Price Index (CPI). The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 0.1% month over month, below April’s 0.2% rise and a beat compared to economists' estimates of a 0.2% monthly gain in prices. On a "core" basis, which excludes volatile food and energy costs, CPI rose 2.8% over the past year in May, matching April. Monthly core prices increased 0.1%, a touch below April's 0.2% gain. Heading into the report, economists had expected core CPI to rise 2.9% year over year and 0.3% month over month.
Investors are closely watching Wednesday's inflation reading ahead of the Federal Reserve's next monetary policy decision on June 18. Odds of a September interest rate cut increased following the inflation data release with markets now pricing in a 59% chance the central bank cuts by the end of that meeting. Just a day ago market had priced in a 53.5% chance.
Read more: The latest on Trump's tariffs
On the corporate front, Tesla (TSLA) shares rose nearly 2% in pre-market after CEO Elon Musk backed off his feud with Trump, saying some of his posts about the president "went too far". Musk also set a tentative June 22 date for the launch of Tesla's robotaxi services.
LIVE 7 updates
Platinum extends gain as market shows further signs of tightness
Platinum (PL=F) extended gains Wednesday, rising to its highest level in four years after trading sideways for about a decade.
Platinum prices were up 4% Wednesday morning to trade at $1,261.40 an ounce. Prices of the metal, which is used in electric vehicles, jewelry, and industrial applications, have soared 40% year to date.
Bloomberg reports that strained supply has caused prices to increase, particularly as President Trump's tariffs disrupted trade flows and output declined in South Africa, the world's largest platinum producer.
From Bloomberg:
Consumer prices largely rise less than expected despite tariff turmoil
Inflation didn't pickup as much as Wall Street expected in May.
The latest data from the Bureau of Labor Statistics showed that consumer prices increased 2.4% over the prior year in May, an increase from April's 2.4% and in line with economists' forecast for 2.4%. But all other closely watched metrics from the release came in below expectations.
On a month-over-month basis, prices increased 0.1%, lower than the 0.2% estimated by economists and the 0.2% increase seen in April.
On a "core" basis, which strips out the more volatile costs of food and gas, prices in April climbed 0.1% over the prior month, lower than April's 0.2% rise and below consensus projections for a 0.3% increase. Over the last year, core prices rose 2.8%, unchanged from the prior month and below Wall Street's expectations for a 2.9% increase.
The biggest IPOs look a lot like the biggest stocks in the market
The largest tech stocks in the market are once again leading the market higher. And in recent weeks, investor excitement surrounding Big Tech has trickled down to newly issued public offerings, such as stablecoin issuer Circle (CRCL) and Nvidia-baked CoreWeave (CRWV).
Yahoo Finance's Josh Schafer writes in today's Morning Brief:
Good morning. Here's what's happening today.
Trending tickers: GameStop, Tesla, and Victoria Secret
Here are some top stocks trending on Yahoo Finance in premarket trading:
GameStop (GME) stock fell 4% before the bell on Wednesday after posting its first quarter earnings the day prior. The US video game retailer announced net sales of $732.4M, down from $881.8M in the same period of 2024.
Tesla (TSLA) stock rose 1% in premarket trading, after CEO Elon Musk backtracked on his comments towards President Trump. Musk said: “I regret some of my posts about President @realDonaldTrump last week,” he said on his social-media platform, X. “They went too far.”
Victoria Secret's (VSCO) shares rose by 1% ahead of its earnings release on Wednesday. The retailer, which recently reported a cyberattack, is expected by analysts to reoort revenue of around $1.35B.
May CPI on deck: Inflation expected to tick higher as tariff uncertainty lingers
Yahoo Finance's Allie Canal reports:
Gold rises even as US and China agree to framework for restoring trade truce
Gold prices are edging higher even after the US and China talks delivered a plan to ease trade tensions, a sign the market is not yet convinced of a breakthrough.
Futures rose 0.7% to around $3,366 an ounce in early trading on Wednesday.
Bloomberg reported:
