U.S. Stock Futures Slip as Trade Talk Details Remain Sparse, CPI Looms
U.S. stock index futures opened slightly lower—around 0.2% declines for the Dow, S&P 500, and Nasdaq—as investors reacted to high-level U.S.–China trade talks that produced no concrete resolution. With major global tensions still unresolved, the focus has shifted to this week’s U.S. inflation data.
Wall Street is now zeroing in on the release of May's Consumer Price Index (CPI), expected to show a 0.2% monthly and 2.5% annual increase. Economists are assessing whether rising tariffs are beginning to propagate through consumer prices.
Traders see about 44 basis points of rate cuts priced in by year-end, with roughly a 50% chance of a 25‑basis-point cut in September. However, analysts do not anticipate changes at the upcoming FOMC meeting next week.
U.S. and Chinese negotiators unveiled a framework aimed at reducing export restrictions—covering critical minerals like rare earths and magnets—pending sign-off by Presidents Trump and Xi. Still, lacking specifics, markets reacted tepidly, as earlier expectations had already priced in much of the progress.
Globally, futures in Europe and the U.S. eased, while Asian markets showed modest gains. Bond markets remained steady ahead of key Treasury auctions and inflation data. Despite some optimism, investors are wary of how enduring these trade developments might be.
In pre-market trading, Tesla shares rose 1.8%, benefiting from Bloomberg reports that its CEO, Elon Musk, publicly expressed regret over recent inflammatory comments about former President Trump. Conversely, GitLab shares dropped 13% after mixed quarterly results, and GameStop fell 4.7% on disappointing revenue figures.
