US Open: Mixed open on Wall Street after lower CPI data and potential US-China deal 🔎🖋️

Wall Street is trading higher at the start of the cash session, with a clear risk-on sentiment across the broader market. Earlier in the day, US index futures posted slight losses after yesterday’s gains, but a rebound quickly followed. The first bullish impulse came from the White House, when Trump confirmed an upcoming trade deal between the US and China — the result of two days of negotiations that began on Monday. Later, US CPI data was released. The lower-than-expected readings reassured investors, and the impact of the trade war on price pressures appeared to be less significant.

CPI Report
Today’s US inflation data surprised the market positively — CPI in May rose by just 0.1% m/m (vs. 0.2% expected), while core CPI also increased by a modest 0.1%, below the 0.3% forecast. This suggests that inflationary pressures in the US are easing, which may reduce the likelihood of further Fed rate hikes.

US-China Deal
At the same time, markets reacted strongly to news from the US-China trade talks. Donald Trump announced a preliminary agreement, which still requires approval from China’s president. Under the deal, the US will impose 55% tariffs, while China will apply 10% tariffs, with Beijing agreeing to upfront deliveries of rare earth metals. Trump described the relationship as “excellent.” The tariffs and terms of the agreement may impact sentiment toward Asian markets and the US dollar.

US2000 (H1 timeframe)
The small-cap index is once again drawing investor attention. The US2000 is up 0.55% at the start of today’s session. The index’s relative strength is being driven by the upbeat CPI data and easing US-China tensions. Smaller companies are more sensitive to global disruptions, high interest rates, and recession risks — and today’s news reduces the probability of such scenarios.

Source: xStation 5

US100 rose about 300 points (+0.5%) after the release of better-than-expected inflation data. After a brief spike to the 22,088 level, which serves as a key resistance point, the index reversed course and accelerated to the downside after the New York stock exchange opened.

US100 (M30 timeframe)

Source: xStation 5

Company News

Chewy (CHWY.US) shares fell 7.7% on Wednesday after the company reported weaker-than-expected gross margin and free cash flow. Additionally, its reiterated full-year sales target disappointed the market. Investors are concerned that, amid a consumption slowdown, spending on pet products may grow more slowly than previously anticipated.

Dave & Buster's (PLAY.US) gained 5% today, despite posting mixed Q1 results. The company reported a small increase in revenue, a significant loss in EPS, and an 8.3% decline in comparable sales. Management reaffirmed its “back-to-basics” strategy and full-year 2025 guidance — planning to keep capex below $220 million, opening costs around $20 million, and interest expenses between $130 million and $140 million.

GitLab (GTLB.US) dropped 13% following disappointing guidance for Q2 and the full year. The company expects Q2 EPS of $0.16–0.17 and revenue of $226–227 million, slightly below market expectations. The full-year outlook was maintained: EPS of $0.74–0.75 (above consensus) and revenue of $936–942 million, slightly below analyst estimates.

GameStop (GME.US) ended the day down 4% after posting mixed Q1 results. While revenue fell 16.9% YoY, the company delivered a net profit of $44.8 million, compared to a loss of $32.3 million a year ago. EPS came in at $0.17, well above consensus ($0.04) and much improved from the prior year’s loss of $0.12 per share.