Stock market today: Dow, S&P 500, Nasdaq futures slip as US, China reach trade plan, with CPI inflation on deck

US stock futures slipped on Wednesday as Wall Street digested the progress on US-China trade negotiations and braced for the release of the May consumer inflation report.

Futures on the S&P 500 (ES=F) and the Dow Jones Industrial Average (YM=F) both fell about 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) inched 0.1% lower.

Teams from the US and China reached an agreement on Tuesday for a framework and implementation plan to ease trade tensions between the two countries.

“We have reached a framework to implement the Geneva consensus,” US Commerce Secretary Howard Lutnick said. The commerce secretary indicated that the deal should resolve issues between the two countries on rare earths and magnets. Representatives will now take the proposal to their respective leaders for approval.

When the two countries struck a temporary trade agreement in Geneva in May, stocks surged. Since then, though, relations between the US and China deteriorated as both sides accused each other of violating the deal. The latest plan to resolve trade disputes followed two days of renewed trade talks in London.

Read more: The latest on Trump’s tariffs

Nevertheless, the upbeat tone surrounding the meetings has helped lift market sentiment. Stocks edged higher on Tuesday, leaving the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) within striking distance of their all-time closing highs.

In the evening on Tuesday, Trump also received a favorable update amid his most sweeping tariffs facing legal uncertainty. A US appeals court ruled that the tariffs can remain in effect while proceedings continue.

The May Consumer Price Index (CPI) report is set for release on Wednesday at 8:30 a.m. ET. Analysts expect to see that inflation increased slightly in the month that followed Trump’s introduction of higher tariff rates. With the Federal Reserve’s next policy meeting next week, investors will be wary of any signs that costs associated with tariffs are being passed onto the consumer.