Futures Slip as U.S., China Try to Frame Future Trade Talks

Stock futures moved lower Wednesday after China and the U.S. reached a trade policy consensus. Investors also awaited the release of May’s consumer inflation report.

Futures for the Dow Jones Industrials let go of 95 points, or 0.2%, to 42,816.

Futures for the S&P 500 index moved lower 10 points, or 0.2%, to 6,035.

Futures for the NASDAQ gave up 40.25 points, or 0.2%, to 21,922.25.

U.S. and Chinese officials reached a consensus on trade after a second day of talks in London. U.S. Commerce Secretary Howard Lutnick said he and U.S. Trade Representative Jamieson Greer will return to Washington to “make sure President Trump approves” the deal outline.

As part of the framework, China would approve the exports of rare earth minerals. Meanwhile, the U.S. would roll back sales restrictions of advanced tech goods to China.

Investors will get further insight into the U.S. economy on Wednesday morning as the Bureau of Labor Statistics rolls out May’s reading of the consumer price index.

Economists polled by Dow Jones call for a 0.2% month-over-month increase, while headline CPI is anticipated to have grown 2.4% from 12 months earlier. A hot report could spook investors who are already on edge over inflationary pressures.

Bank of America reported this morning that GE Vernova share prices should rise on the back of U.S. electrical load growth.

In Japan, the Nikkei 225 index gained 0.6% Wednesday, while in Hong Kong, the Hang Seng picked up 0.8%

Oil prices added 96 cents to $65.94 U.S. a barrel.

Gold prices ballooned $11.50 to $3,354.90 U.S. an ounce.