June S&P 500 E-Mini futures (ESM26) are up +0.25%, and June Nasdaq 100 E-Mini futures (NQM26) are up +0.79% this morning, buoyed by gains in technology stocks, while investors gear up for crucial U.S. producer inflation data and the highly anticipated Trump-Xi summit.

Futures on the Nasdaq 100 outperformed as processor and memory chipmakers rebounded in pre-market trading. The rebound came as investors relied on the vast earnings potential of AI to offset concerns about elevated oil prices. Investors are also betting that the summit between U.S. President Donald Trump and China’s leader Xi Jinping could pave the way for a slew of trade deals, particularly around semiconductors.

President Trump is set to arrive in China on Wednesday for his meeting with Xi Jinping on Thursday, where the two leaders are expected to discuss a wide range of sensitive issues. Mr. Trump said on Tuesday he would focus on trade talks during his summit with Xi Jinping, while playing down how much attention they would give to the Iran war.

In yesterday’s trading session, Wall Street’s major indexes closed mixed. Chip and AI infrastructure stocks sank, with Qualcomm (QCOM) plunging over -11% to lead losers in the S&P 500 and Nasdaq 100, and Sandisk (SNDK) slumping more than -6%. Also, Hims & Hers Health (HIMS) tumbled over -14% after the telehealth provider posted downbeat Q1 results and cut its full-year adjusted EBITDA guidance. In addition, AST SpaceMobile (ASTS) dropped more than -11% after the satellite manufacturer reported a wider-than-expected Q1 loss. On the bullish side, Zebra Technologies (ZBRA) climbed over +11% and was the top percentage gainer on the S&P 500 after the maker of automation technology posted stronger-than-expected Q1 results and raised its full-year guidance.

The U.S. Bureau of Labor Statistics report released on Tuesday showed that consumer prices rose +0.6% m/m in April, in line with expectations. On an annual basis, headline inflation rose +3.8% in April, stronger than expectations of +3.7% and the biggest increase in almost three years. Also, the core CPI, which excludes volatile food and fuel prices, rose +0.4% m/m and +2.8% y/y in April, stronger than expectations of +0.3% m/m and +2.7% y/y.

Chicago Fed President Austan Goolsbee said on Tuesday that the April CPI report was worse than expected and that a pickup in services inflation, which is not affected by tariffs or the spike in energy prices, is especially concerning. “If you look at the components that are not energy, like services, if that is an indication that the underlying economy is overheating, then the Fed has got to be thinking about how do we break the chain of escalating inflation,” Goolsbee said.

“The increase in the core CPI suggests high energy prices are making themselves felt throughout the economy. It doesn’t mean the Fed will pivot to rate hikes, but it does reinforce the reality that new Fed leadership won’t result in an immediate dovish shift,” said Ellen Zentner at Morgan Stanley Wealth Management.

Meanwhile, Kevin Warsh won Senate confirmation to the Federal Reserve Board of Governors on Tuesday. A separate confirmation vote for the chairmanship is expected as soon as Wednesday, just days before Jerome Powell’s term as chair ends.

U.S. rate futures have priced in a 97.6% chance of no rate change and a 2.4% chance of a 25 basis point rate cut at the conclusion of the Fed’s June meeting.

Today, all eyes are focused on the U.S. Producer Price Index, which is set to be released in a couple of hours. Economists, on average, forecast that the U.S. April PPI will stand at +0.5% m/m and +4.9% y/y, compared to the previous figures of +0.5% m/m and +4.0% y/y.

The U.S. Core PPI will also be closely monitored today. Economists expect April figures to be +0.3% m/m and +4.3% y/y, compared to +0.1% m/m and +3.8% y/y in March.

The EIA’s weekly crude oil inventories report will be released today as well. Economists expect this figure to be -2 million barrels, compared to last week’s value of -2.3 million barrels.

In addition, market participants will parse comments today from Boston Fed President Susan Collins and Minneapolis Fed President Neel Kashkari.

On the earnings front, networking company Cisco Systems (CSCO) is set to report its FQ3 results today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.47%, up +0.20%.

The Euro Stoxx 50 Index is up +0.48% this morning, recovering part of the previous session’s losses, while investors turn their attention to the summit between U.S. President Donald Trump and Chinese leader Xi Jinping. The two leaders are expected to discuss trade, the Iran war, and other points of contention. Mining stocks led the gains on Wednesday. Technology stocks also climbed. In addition, financial and healthcare stocks advanced. Sentiment was supported by a retreat in oil prices and a renewed focus on corporate earnings. Eurostat said in an update on Wednesday that the Eurozone’s gross domestic product growth for the first quarter stood at 0.1%, in line with a preliminary estimate. Separately, data showed that the Eurozone’s monthly industrial production rose in March, although the Middle East conflict is expected to increasingly weigh on manufacturers across the region. In addition, final data from the statistics office INSEE confirmed that France’s annual inflation rate rose to 2.2% in April. In corporate news, Merck (MRK.D.DX) gained over +7% after the company raised its full-year adjusted operating profit guidance. Also, ABN Amro (ABN.NA) climbed more than +6% after the Dutch bank posted better-than-expected Q1 earnings and lowered its full-year cost guidance.

France’s CPI, Eurozone’s GDP (second estimate), Eurozone’s Employment Change (preliminary), and Eurozone’s Industrial Production data were released today.

The French April CPI rose +1.0% m/m and +2.2% y/y, in line with expectations.

Eurozone’s GDP came in at +0.1% q/q and +0.8% y/y in the first quarter, in line with expectations.

Eurozone’s Employment Change arrived at +0.1% q/q in the first quarter, stronger than expectations of no change q/q.

Eurozone’s March Industrial Production rose +0.2% m/m and fell -2.1% y/y, weaker than expectations of +0.3% m/m and -1.7% y/y.

Asian stock markets today closed in the green. China’s Shanghai Composite Index (SHCOMP) closed up +0.67%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.84%.

China’s Shanghai Composite Index erased earlier losses and ended higher today as dip buyers lifted technology stocks, while investors braced for the highly anticipated Trump-Xi summit. AI-related stocks jumped on Wednesday as Jensen Huang’s participation in U.S. President Donald Trump’s trip to Beijing prompted investors to evaluate the potential benefits of China securing H200 chip supply from Nvidia. U.S. President Donald Trump and Chinese leader Xi Jinping will meet for their first in-person talks in more than six months as they seek to stabilize relations strained by trade, the Iran war, and other disagreements. Trump is set to arrive in Beijing on Wednesday, with talks scheduled for Thursday and Friday. More than a dozen CEOs and senior executives from companies including Tesla, BlackRock, and Illumina are expected to join Trump on his visit. Nvidia CEO Huang joined after a last-minute call from Trump, putting AI and technology in the spotlight ahead of the high-stakes Beijing summit. Elsewhere, Morgan Stanley on Wednesday raised its forecast for China’s 2026 economic growth to 4.8% from a previously projected 4.7%, citing robust exports amid an AI and green capital-expenditure supercycle. In corporate news, JD.com climbed over +8% in Hong Kong after the e-commerce company swung back to profit in the first quarter.

Japan’s Nikkei 225 Stock Index reversed earlier losses and closed higher today as renewed optimism around AI outweighed concerns over stalled U.S.-Iran talks and hotter-than-expected U.S. inflation. Memory chipmaker Kioxia surged over +9% after early losses, becoming the largest contributor to the Nikkei’s gains. Strength in automobile and trading house stocks also lent support to the overall market. Also aiding sentiment, oil prices fell in Tokyo trading, breaking a three-day rally even as the Strait of Hormuz remained closed. In addition, investors became more confident about the domestic corporate outlook. Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, said, “The market had expected companies to flag a modest outlook (this earnings season), but it turned out that overall it was not as weak as they had expected.” Meanwhile, Japanese government bonds tumbled on Wednesday, with the 20-year yield reaching its highest level since 1997, as Middle East-driven inflation concerns intensified a global bond selloff. The OECD said on Wednesday that the Bank of Japan is expected to raise its short-term policy rate to 2% from the current 0.75% by the end of 2027, arguing that higher inflation expectations, robust wage growth, and a closed output gap warrant further rate hikes. On the economic front, Japan’s April Economy Watchers Survey showed that ongoing tensions in the Middle East continued to dampen sentiment, posing a threat to the nation’s recovery trajectory. Separately, data showed that Japan’s current account surplus climbed to a record high in March, supported by a widening trade and income surplus. In corporate news, Olympus Corp. jumped over +19% after the medical equipment maker issued above-consensus annual net profit guidance and announced a share buyback plan. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.98% to 31.22. 

The Japanese March Current Account n.s.a. stood at 4.682 trillion yen, stronger than expectations of 3.879 trillion yen.

The Japanese April Economy Watchers Current Index came in at 40.8, weaker than expectations of 41.5.

Pre-Market U.S. Stock Movers

Chip and AI infrastructure stocks are rebounding in pre-market trading. Micron Technology (MU) is up about +6% and Qualcomm (QCOM) is up over +4%. Also, Marvell Technology (MRVL) is up more than +3%. In addition, Intel (INTC) and Advanced Micro Devices (AMD) are up over +2%.

Nvidia (NVDA) rose more than +2% in pre-market trading after CEO Jensen Huang joined President Trump on his visit to China.

EchoStar (SATS) climbed about +5% in pre-market trading after the Federal Communications Commission said in a statement late Tuesday that it had cleared the company’s sale of wireless spectrum to AT&T and SpaceX.

Wolfspeed (WOLF) popped more than +27% in pre-market trading after Citrini Research recommended buying shares of the power chipmaker.

MercadoLibre (MELI) fell nearly -1% in pre-market trading after Citi downgraded the stock to Neutral from Buy.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - May 13th

Cisco Systems (CSCO), Dynatrace (DT), Stantec (STN), The Magnum Ice Cream Company (MICC), USA Rare Earth (USAR), Doximity (DOCS), Vishay Intertechnology (VSH), Oruka Therapeutics (ORKA), Hawkins (HWKN), Accelerant Holdings (ARX), StubHub Holdings (STUB), Eos Energy Enterprises (EOSE), Lightwave Logic (LWLG), Prestige Consumer Healthcare (PBH), National Vision Holdings (EYE), Collective Mining (CNL), Precigen (PGEN), Capital Southwest (CSWC), Enovix (ENVX), STAAR Surgical Company (STAA), Versamet Royalties (VMET), Bitgo Holdings (BTGO), Savara (SVRA), Avino Silver & Gold Mines (ASM), Omeros (OMER), National Healthcare Properties (NHP), Contango Silver & Gold (CTGO), Allogene Therapeutics (ALLO), Grocery Outlet Holding (GO), Idaho Strategic Resources (IDR), Galiano Gold (GAU), Spire Global (SPIR), Altimmune (ALT), Richtech Robotics (RR), Aquestive Therapeutics (AQST), Guardian Metal Resources (GMTL).

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