US futures mixed as investors await PPI data and Trump heads to China
Dow futures slip 0.3% while tech-heavy Nasdaq 100 rises 0.7% ahead of April producer price index release.
US stock futures traded in mixed territory on Wednesday as investors digested a hotter-than-expected April consumer price index and awaited the release of wholesale inflation data. The Dow Jones Industrial Average futures slipped 0.3%, while the S&P 500 futures edged up 0.2% and the Nasdaq 100 futures climbed 0.7%. The tech-heavy index rebounded after a sell-off in the chip sector on Tuesday, with markets looking to the upcoming producer price index report to test whether rising fuel prices are stoking wider price pressures.
The hotter consumer inflation release reinforced expectations that the Federal Reserve will hold interest rates steady at its next meeting. Concurrently, President Donald Trump arrived in China for a summit with President Xi Jinping, where the two leaders are expected to prioritise trade discussions and artificial intelligence cooperation. Trump stated that trade talks would take precedence over the ongoing conflict in the Middle East, asserting that Iran remains under control despite reiterating military threats ahead of his arrival.
Nvidia CEO Jensen Huang joined the US delegation as a last-minute addition, boarding the flight at a refueling stop in Anchorage. His inclusion followed an override by President Trump of initial concerns from hawkish national security officials regarding Huang’s stance on the Chinese market. Huang is now travelling alongside leaders from Tesla, Apple, BlackRock, Boeing, Cargill, and Citi to discuss bilateral economic ties.
A global memory chip shortage driven by surging AI demand is widening the performance gap between semiconductor suppliers and device makers. Memory pricing was mentioned more than 550 times in company earnings calls and reports this year, exceeding the total for any full year since Bloomberg began tracking global equities in 1999. Suppliers such as Micron Technology and Samsung have seen shares surge to record highs, while device makers like HP and Nintendo face profit pressures from higher chip costs.
In commodity markets, oil prices steadied near $107 a barrel for Brent crude as a US naval blockade continues to strain Iranian exports from the Strait of Hormuz. Satellite imagery indicates an extended halt in oil shipments from Iran’s Kharg Island, the first such sign since hostilities began. Meanwhile, silver and copper futures have rallied in tandem due to infrastructure demands for AI data centres, with copper recently hitting a record high, while gold prices have drifted lower.
