May 13 - S&P 500 and Nasdaq futures moved higher on Wednesday, regaining ground lost in the previous session as market participants prepared for important economic data and U.S. President Donald Trump’s trip to China. At the same time, hopes for a sustained peace agreement with Iran diminished after talks between the parties reached a stalemate.
President Trump said ahead of the summit in Beijing that he did not expect to ask Chinese President Xi Jinping to intervene in the conflict with Tehran. He added that he would press Xi to "open up" China to U.S. businesses and named Nvidia CEO Jensen Huang as one of the corporate leaders joining his delegation. Officials from the two largest economies are also exploring the possibility of extending a truce on Chinese rare earth export curbs.
Energy markets offered some relief to investors as oil prices declined on the day, ending a three-session rally. Nonetheless, market participants remain cautious that a prolonged conflict could sustain higher energy costs, which in turn would add to inflationary pressures and complicate the U.S. Federal Reserve’s policy outlook.
Monetary policy developments also weighed on sentiment. The Senate confirmed Kevin Warsh to the Federal Reserve board on Tuesday, and the board could move to approve him as chair as soon as Wednesday. Jerome Powell’s term is set to expire on Friday. Markets have largely priced out a Fed rate cut this year, while the probability of at least a 25-basis-point hike at the December meeting has risen to more than 28%, up from below 22% earlier in the week, according to CME’s FedWatch Tool.
At 05:35 a.m. ET, futures were mixed: Dow E-minis were down 149 points, or 0.3%, S&P 500 E-minis were up 16.75 points, or 0.23%, and Nasdaq 100 E-minis had gained 239.75 points, or 0.82%. The S&P 500 and the Nasdaq Composite had pulled back from record highs on Tuesday after U.S. consumer inflation showed its steepest monthly increase in three years for April.
Investors are also awaiting producer price index data due at 8:30 a.m. ET for signs of mounting input-cost pressures. Retail sales figures later in the week will be watched for evidence that elevated gasoline and energy costs are beginning to constrain other areas of consumer spending.
Chip stocks, which had pressured markets in the previous session, showed signs of stabilization on Wednesday with memory-chip makers leading the rebound in premarket trading. Micron Technology rose 6.2%, Western Digital increased 3.1%, Seagate climbed 2.8% and SanDisk jumped 5.3% in premarket activity.
Market context
- Equities: S&P 500 and Nasdaq futures recovered losses, while Dow futures lagged.
- Energy: Oil fell after three straight sessions of gains, providing some easing of inflationary concerns.
- Semiconductors: Memory-chip names led a premarket rebound following a recent selloff.
What’s next
- Producer price data at 8:30 a.m. ET will be monitored for input-cost trends.
- Retail sales later in the week will be assessed for the impact of rising gasoline and energy costs on broader consumer spending.
- Market attention will remain on developments from President Trump’s China visit, including trade and rare earth export discussions.