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US STOCKS-US stock futures flat after stellar start to week, focus on trade developments
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US STOCKS-US stock futures flat after stellar start to week, focus on trade developments
May 26, 2025 7:29 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Futures up: Dow 0.1%, S&P 500 0.04%, Nasdaq 0.02%

*

At least three Fed speakers to speak on Wednesday

*

American Eagle Outfitters ( AEO ) drops after withdrawing FY

guidance

May 14 (Reuters) - U.S. stock index futures were flat on

Wednesday, following a strong start to the week when a soft

inflation reading and a U.S.-China trade truce lifted sentiment,

with focus now on more developments around more trade deals.

Stocks on Wall Street have been on the rise since Washington

and Beijing agreed over the weekend to dial back stringent

reciprocal tariffs, signaling a joint effort to stave off a

global economic slowdown.

The U.S. will temporarily lower the extra tariffs it imposed

on Chinese imports to 30% from 145% for three months, while

Chinese duties on U.S. imports will fall to 10% from 125% in the

same period.

As of Tuesday's close, the S&P 500 has turned

positive on a year-to-date basis for the first time since late

February, though still remains more than 4% away from its record

highs hit earlier this year.

Both the S&P 500 and the Nasdaq have rebounded to

levels seen before April 2 - when President Donald Trump

announced his "Liberation Day" reciprocal tariffs on most

trading partners.

A 90-day pause announced on April 9 for countries other than

China, along with solid earnings reports and a limited U.S.-UK

trade agreement last week, helped the benchmarks regain lost

ground.

Trump began a meeting with Syria's president in Saudi Arabia

on Wednesday, with investors looking for updates on a trade deal

in the president's four-day swing through the Gulf region.

The S&P 500 and the Nasdaq closed higher on Tuesday after

data showed U.S. consumer prices rebounded moderately in April,

with headline inflation increasing 0.2% compared with economist

estimates for a 0.3% increase and a 0.1% drop in March.

"From a market point of view, the main relief was also that

tariffs weren't showing up in a major way in consumer prices,

even though April included the 10% universal baseline tariffs,

and much higher tariffs on China," Deutsche Bank analysts said

in a note.

Traders currently at least two 25 basis points rate cuts by

the end of the year, with the first cut likely in September,

according to data compiled by LSEG.

On Wednesday, at least three Federal Reserve officials

including Fed Governor Christopher Waller are slated to speak

throughout the day, with Chair Jerome Powell set to make public

remarks on Thursday.

At 04:45 a.m. ET, Dow E-minis were up 43 points, or

0.1%, S&P 500 E-minis were up 2.5 points, or 0.04% and

Nasdaq 100 E-minis were up 3.25 points, or 0.02%.

Tesla and Nvidia ( NVDA ) led gains amongst major

megacap and growth stocks, both rising close to 2% each in

premarket trading.

On the other hand, American Eagle Outfitters ( AEO ) dropped

13.8% after the apparel company withdrew its annual forecasts

citing tariff-fueled economic uncertainty.

With more than 90% of S&P 500 companies having reported

earnings, numbers from retail giant Walmart ( WMT ) will be on

the radar later this week.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Varun H

K)

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