U.S.-China Trade Truce Holds Amid Inflation Concerns

U.S. stock index futures saw a minor decline on Wednesday, as the market braces for crucial inflation data release and keeps an eye on U.S.-China trade discussions. These talks have momentarily sustained a tariff standoff between the two powerful economies.

The anticipated May consumer price index (CPI) report is scheduled for release at 8:30 a.m. ET. Reuters surveyed economists who forecast a modest 0.2% monthly rise, with an annual increase of 2.5%, potentially aggravated by tariffs exposing fundamental price pressures. 'The markets are refocusing from tariff risks to essential macroeconomic data,' observed Jeff O'Connor of Liquidnet.

More optimism reflects the framework agreement between U.S. and Chinese officials aimed at realigning the trade truce and solving issues regarding China's rare earth exports. While specifics remain sparse, U.S. Commerce Secretary Howard Lutnick confirmed ongoing negotiations in London, pending presidential reviews, target remedying the reciprocal tariffs negatively impacting global markets.

(With inputs from agencies.)