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Futures up: Dow 0.14%, S&P 500 0.21%, Nasdaq 0.27%

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GameStop ( GME ) falls after reporting decline in quarterly

revenue

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GameStop ( GME ) falls after it reports decline in Q1 revenue

(Updates before markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 11 (Reuters) - The S&P 500 and Nasdaq were on track

to open near record levels on Wednesday, as a

cooler-than-expected inflation report calmed concerns around

tariff-driven price pressures and fanned expectations for

interest rate cuts.

The Consumer Price Index (CPI) increased 0.1% in May after

rising 0.2% in April, while economists polled by Reuters had

forecast a 0.2% increase for last month. Annually, headline

inflation stood at 2.4%, compared with an estimated 2.5% rise.

"Longer term there's still concerns about Trump's

tariffs being inflationary but this report was better than

expected and it fuels hope that the Federal Reserve will be able

to step in with rate cuts later on this year," said Robert

Pavlik, senior portfolio manager at Dakota Wealth.

Following the data, traders of short-term interest-rate

futures priced in a 70% chance of a quarter-point reduction in

the Fed policy rate by September, compared with 57% earlier.

Policymakers are widely expected to keep rates unchanged next

week.

A day after officials from Washington and Beijing agreed on

a framework to put their trade truce back on track, President

Donald Trump said the U.S. deal with China was done, with

Beijing to supply magnets and rare earth minerals.

Investors are awaiting more details from the trade talks

aimed at mitigating tit-for-tat tariffs that have disrupted

global markets for much of the year.

The U.S. stock market has rallied in recent weeks,

recovering from a slump in April sparked by Trump's "Liberation

Day" tariffs.

The S&P 500 remains about 1.7% below all-time highs touched

in February, while the Nasdaq is 2.3% below its record peaks

reached in December.

At 08:54 a.m. ET, Dow E-minis were up 61 points, or

0.14%, S&P 500 E-minis were up 12.75 points, or 0.21%,

and Nasdaq 100 E-minis were up 58.5 points, or 0.27%.

Among stocks, Tesla advanced 2.7% premarket after

CEO Elon Musk said he regrets some of the posts he made last

week about Trump, following an abrupt rift that has roiled the

electric-vehicle maker's shares.

Software development platform provider GitLab ( GTLB ) fell

12.8% after reporting quarterly results.

Shares of videogame retailer GameStop ( GME ) fell 2.7%

after it reported a decline in first-quarter revenue.

Summit Therapeutics ( SMMT ) was down marginally after

brokerage Leerink Partners started coverage on the drug

developer with an "underperform" rating.

(Reporting by Kanchana Chakravarty in Bengaluru; Editing by

Devika Syamnath)