Markets Stall as Inflation Shock Hits Zero and Musk Reverses Course

Markets opened flat on Wednesday, with US stock futures barely budging after a surprise in the latest inflation report. Consumer prices in May came in almost unchanged—defying forecasts and signaling a sudden cooling in inflationary pressure. The unexpected data sparked fresh speculation about interest rate cuts ahead, though traders remained cautious amid global uncertainty.

At the center of headlines, Elon Musk acknowledged regret over recent inflammatory posts following a political spat with Donald Trump. The public fallout had raised concerns over Tesla’s government contracts, but shares recovered in premarket trading as Musk struck a more conciliatory tone.

Meanwhile, Musk announced a tentative launch date—June 22—for Tesla’s long-awaited robotaxi service. While delays remain possible due to safety concerns, the move signals renewed momentum in Tesla’s autonomous strategy.

On the trade front, the US and China reached a tentative outline to resume rare earth flows, but markets shrugged it off. Investors remain skeptical as key details await final approval from Trump and Xi.

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