May CPI, US-China trade deal, Elon Musk apologizes: 3 Things
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US stock futures (ES=F, NQ=F, YM=F) are riding high after May's Consumer Price Index (CPI) report saw inflation cooling, rising by only 0.1% month-over-month (below estimates of 0.2%) and 2.4% year-over-year (in line with estimates).
President Trump announced this morning that the US and Chinese officials have reached a trade deal, which includes a 55% tariff rate on imported goods from China. The two countries leaders still have to officially agree on the proposals.
Tesla (TSLA) CEO and SpaceX founder Elon Musk took to social media to communicate his regret about last week's fallout with Trump, stating he "went too far" with his criticisms.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Let's get to the three things you need to know today. First up, US stock futures pushing higher this morning following the May CPI report, which showed consumer prices coming in softer than Wall Street had expected. Latest inflation print easing investor concerns over price pressures, which could have kept the Federal Reserve rate cuts off the table.
Plus, the US and China reaching a trade agreement after two days of talks in London. President Trump taking to social media this morning to announce the deal, which included agreements on rare earth supplies and access for Chinese students at American universities. The agreement is still subject to approval by President Xi and President Trump.
And Tesla shares moving higher this morning after CEO Elon Musk took to X to post regret about his social media spat with President Trump last week. The disagreement over the Republican tax bill turned personal, Musk claiming Trump would have lost the election without him and saying Trump's tariffs will cause a recession. President Trump responding by threatening to cancel billions and billions of government contracts for Musk's SpaceX. The public feud caused Tesla to shed $153 billion from its market cap, marking its biggest ever one-day drop.
