U.S. markets opened higher on Wednesday after May inflation data came in slightly cooler than expected. At the opening bell, the Dow Jones Industrial Average edged up 16.0 points or 0.04% to 42,882.86. The S&P 500 gained 10.6 points or 0.18% to hit 6,049.38, while the Nasdaq Composite rose 64.4 points or 0.33% to 19,779.35, both hovering near record highs.
The latest Consumer Price Index (CPI) report from the Labor Department showed that inflation ticked up 2.4% year-on-year in May, slightly below analyst forecasts of 2.5%, though up from 2.3% in April — marking the first annual acceleration in four months.
On a monthly basis, the CPI increased by just 0.1%, in line with expectations and down from 0.2% in April. The primary driver was a 0.3% rise in shelter costs, while energy prices fell 1%, softening the overall index.
Core inflation, which excludes food and energy, held steady at 2.8%, defying expectations of a rise to 2.9%. The monthly core CPI also edged up by 0.1%, lower than both April’s 0.2% and forecasts of 0.3%.
Amid the release of inflation data, Trump has urged Fed to reduce the rate by “full one point.” He wrote on Truth Social, “CPI Just Out. Great Numbers! Fed Should Lower One Full Point. Would Pay Much Less Interest on Debt Coming Due. So Important!!!.”
Meanwhile, US president Donald Trump has announced on Wednesday that China has agreed to deliver rare earth elements upfront to the United States as part of a broader trade agreement under negotiation. Trump described the US-China relationship as “excellent” in a post on Truth Social, stating that “We are getting a total of 55% tariffs, china is getting 10%.” He also said that the agreement includes China’s commitment to provide full magnets and all necessary rare earths in advance.