13.05.202612:45:47UTC+00US Futures Pare Rebound After Hot PPI

US equity futures pared an early rebound as signs of rising inflation clashed with continued enthusiasm for AI-related stocks. S&P 500 and Nasdaq futures hovered near the flatline, keeping both indexes close to record highs, while Dow futures fell about 250 points. April producer price inflation rose more than expected for both energy-sensitive goods and non-energy services, indicating that the impact of the Middle East conflict on prices has broadened beyond direct fuel costs to the wider economy. This came alongside a renewed increase in refined fuel prices this week, driven by the ongoing blockade of tankers in the Persian Gulf. Even so, robust earnings prospects for AI software and hardware makers have continued to support equity indices since the first-quarter reporting season. Hyperscalers traded higher in premarket action after SoftBank reported sharp gains on its private stake in OpenAI. Nvidia advanced 2.5% after CEO Jensen Huang unexpectedly joined other tech executives and the US delegation at a summit with Chinese officials.