U.S. stock futures edged higher on Wednesday, buoyed by cooling inflation data and easing concerns over the U.S.-China trade war, which helped lift investor sentiment across global markets.
Futures tied to the Dow Jones Industrial Average (YM=F) rose 0.1%, while the S&P 500 futures (ES=F) also gained 0.1%. Futures for the tech-heavy Nasdaq 100 (NQ=F) increased by 0.2%. The S&P 500 has now erased its losses for the year, signaling growing optimism among investors.
The gains followed a broad rally on Tuesday, supported by lower-than-expected April inflation and renewed hopes for de-escalation in the ongoing trade conflict. Markets responded positively to President Trump’s recent announcement of a 90-day tariff truce with China.
Chipmaker Nvidia (NVDA) was a major driver of the technology sector rally, lifted by reports of upcoming semiconductor regulation reform and a new partnership with Saudi Arabia.
While Asian markets opened mixed despite the easing trade tensions, many regional indices recorded notable gains as the trading session progressed. Japan’s Nikkei 225 (^N225) ended a four-day winning streak with a 0.3% decline. South Korea’s KOSPI (^KS11) rose 1.2%, while Australia’s ASX 200 (^AXJO) hovered near flat.
In Greater China, the Hang Seng Index (^HSI) advanced 1.7%, and the mainland’s CSI 300 (83188.HK) gained 1.1%.
Investor optimism was further supported by the latest Consumer Price Index (CPI) data, which showed inflation rising at its slowest pace since 2021, despite ongoing tariff impacts on prices. The report was viewed as a sign that the Federal Reserve may have more flexibility in its policy stance.
However, earnings season continues under the shadow of global trade uncertainty. On Tuesday, American Eagle (AEO) withdrew its forward guidance due to “macro uncertainty,” triggering a sharp after-hours stock decline.
Looking ahead, earnings reports are expected Wednesday from Sony (SONY), CoreWeave (CRWV), and Cisco Systems (CSCO).
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