(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 up: Dow 0.1%, S&P 500 0.04%, Nasdaq 0.02%
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At least three Fed speakers to speak on Wednesday
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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)