(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window)
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Futures down: Dow 0.18%, S&P 500 0.15%, Nasdaq 0.16%
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GameStop ( GME ) falls after reporting decline in quarterly
revenue
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May CPI data due at 8:30 a.m. ET
(Updates with prices)
By Kanchana Chakravarty and Sukriti Gupta
June 11 (Reuters) - U.S. stock index futures edged lower
on Wednesday as investors stayed cautious ahead of a key
inflation reading and awaited more details from U.S.-China trade
talks that preserved a tariff truce between the two superpowers.
The May consumer prices report (CPI) is due at 8:30 a.m. ET,
with economists polled by Reuters expecting a 0.2% rise
month-over-month and a 2.5% increase on an annual basis,
slightly higher than April as tariffs potentially raised
underlying price pressures.
"Markets appear to be shifting their focus - at least
temporarily - away from headline-driven tariff risk and back to
the macro data that really matters," said Jeff O'Connor, head of
market structure at Liquidnet.
"Investors are bracing for the first hard evidence of how
recent trade policies may be filtering into inflation."
Traders are pricing in 44 basis points of rate cuts by
year-end, per data compiled by LSEG. They are penciling in a 52%
chance of a 25 bps cut in September, according to the CME
Group's FedWatch tool. Policymakers are widely expected to keep
rates unchanged next week.
U.S. and Chinese officials agreed on a framework to put
their trade truce back on track and resolve China's export
restrictions on rare earth minerals and magnets, U.S. Commerce
Secretary Howard Lutnick said on Tuesday, at the end of two days
of intense negotiations in London. He did not provide further
details on the agreement.
The negotiations, which are pending reviews from President
Donald Trump and Chinese President Xi Jinping, were aimed at
mitigating tit-for-tat tariffs between the two superpowers that
have roiled global markets for much of the year.
The talks did little to lift sentiment among investors, who
had priced the deal in to some extent.
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 06:59 a.m. ET, Dow E-minis were down 76 points,
or 0.18%, S&P 500 E-minis were down 9.25 points, or
0.15%, and Nasdaq 100 E-minis were down 34.25 points, or
0.16%.
Among stocks, Tesla advanced 1.9% 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
11.8% after reporting quarterly results.
Shares of videogame retailer GameStop ( GME ) fell 4.8%
after it reported a decline in first-quarter revenue.
Summit Therapeutics ( SMMT ) was down 2.9% after brokerage
Leerink Partners started coverage on the drug developer with an
"underperform" rating.