(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 0.19%, S&P 500 0.27%, Nasdaq 0.37%
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Three Fed speakers scheduled to speak on Wednesday
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American Eagle Outfitters ( AEO ) drops after withdrawing FY
forecast
(Updates before markets open)
By Shashwat Chauhan and Pranav Kashyap
May 14 (Reuters) - Wall Street's main indexes were set
to open higher on Wednesday after the week's strong start as
soft inflation data and the U.S.-China tariff truce boosted
sentiment, while Donald Trump's Gulf tour stoked expectations of
additional trade agreements.
U.S. stocks have been riding on optimism since the
weekend, when the United States and China decided to hit pause
on their fierce tariff dispute and signaled 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.
"While there are undoubtedly still uncertainties and
details to iron out with the trade negotiation with China, the
easing of tensions is apparently enough for the markets, which
are typically forward-looking and are pricing in an environment
where the U.S. and China are able to trade with each other,"
said Rick Gardner, chief investment officer at RGA Investments,
in e-mailed comments.
Tuesday's close saw the S&P 500 finally elbowing back
into positive territory for the year, a milestone not seen since
late February. However, the benchmark index has a lot of ground
to cover and is more than 4% off the record peaks it hit earlier
this year.
Both the S&P 500 and the tech-laden Nasdaq have
managed to recapture levels last seen before U.S. President
Donald Trump's April 2 "Liberation Day" tariff announcement,
which had cast a pall over a broad swathe of international
trade.
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 benchmark indexes claw
back.
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 rising 0.2%, compared with economists'
estimate of a 0.3% increase and versus a 0.1% drop in March.
At least three U.S. Federal Reserve officials including Fed
Governor Christopher Waller are slated to speak on the day. But
the main event of the week will be Fed Chair Jerome Powell's
public remarks on Thursday, which will be dissected for any
hawkish or dovish undertones.
At 08:29 a.m. ET, Dow E-minis were up 80 points, or
0.19%, S&P 500 E-minis were up 16 points, or 0.27%, and
Nasdaq 100 E-minis were up 79.25 points, or 0.37%.
Most megacap and growth stocks ticked up, with Nvidia ( NVDA )
leading the charge with a 3% jump. Other chip stocks
like Advanced Micro Devices ( AMD ) also rose in premarket
trading.
A number of U.S. technology firms announced
artificial-intelligence deals in the Middle East on Tuesday, as
Trump secured
$600 billion
in commitments to U.S. companies from Saudi Arabia during
his trip to the Gulf states.
On the other hand, American Eagle Outfitters ( AEO ) dropped
12.7% after the apparel company withdrew its annual forecasts,
citing economic uncertainty fueled by tariffs.
As earnings season comes to a close, results from retail
giant Walmart ( WMT ) will be on the radar later in the week.