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US Stocks Slip as US-China Trade Plan Reached, Inflation Data Ahead

AinvestWednesday, Jun 11, 2025 4:18 am ET
1min read

US stock futures slipped on Wednesday as the US and China reached a trade plan and braced for the release of the May consumer inflation report. Teams from the two countries agreed on a framework to ease trade tensions, with the S&P 500, Dow Jones, and Nasdaq futures falling 0.2% to 0.1%. The May CPI report is set for release at 8:30 a.m. ET, with analysts expecting inflation to have increased slightly in the month following Trump's introduction of higher tariff rates.

US stock futures dipped on Wednesday as the United States and China agreed on a trade plan to ease tensions, while markets braced for the release of the May consumer inflation report. Futures tied to the S&P 500, Dow Jones, and Nasdaq 100 fell by 0.2% to 0.1%, reflecting investor caution amid ongoing trade developments and the upcoming economic data release.

The trade agreement, reached between the US and China, outlines a framework to address key issues, including access to rare earth minerals and export controls. This development, while positive, has not yet provided the concrete progress that investors were hoping for. The mixed messaging from both sides, with initial optimism followed by warnings from President Trump, has kept investors on edge [1].

The market's focus has shifted to the upcoming May Consumer Price Index (CPI) report, scheduled for release at 8:30 a.m. ET. Analysts expect inflation to have increased slightly in May, following the introduction of higher tariff rates by President Trump. This data could significantly influence the Federal Reserve's future interest rate decisions, potentially impacting stock market direction, particularly for tech stocks that are more sensitive to interest rate shifts [2].

The premarket session saw mixed movements, with tech stocks like Apple (AAPL) and Nvidia (NVDA) gaining ground, while others like Tesla (TSLA) extended their volatile run. The broader market, however, remained subdued, reflecting investor caution. The US-China trade talks have been a significant factor in market movements, with the potential for further volatility as the talks continue to unfold.

The next 24-48 hours will be critical in setting the tone for the markets this week. Investors are taking a wait-and-see approach, with futures flat and volatility rising in Asia. Every headline from the trade talks in London could move the needle, making the upcoming CPI report a key event to watch.

References:
[1] https://economictimes.indiatimes.com/news/international/us/us-stock-market-future-today-dow-sp-500-and-nasdaq-futures-flat-as-us-china-trade-talks-continue-and-investors-await-key-cpi-inflation-data/articleshow/121753548.cms?from=mdr
[2] https://www.investopedia.com/dow-jones-today-06092025-11750420
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