U.S. equities slipped on Wednesday as geopolitical jitters and uncertainty over a preliminary U.S.–China trade agreement outweighed a surprisingly benign inflation report. The S&P 500 lost about 0.27%, the Nasdaq Composite fell 0.5% and the Dow Jones Industrial Average finished little changed, erasing earlier gains after reports of heightened tension in the Middle East. Government data showed consumer prices rose just 0.1% in May, undershooting economists’ forecasts and suggesting that the 145% tariff on Chinese goods that took effect in April has yet to translate into significant near-term price pressures. The softer reading tempered fears of a more aggressive Federal Reserve response to inflation. Even so, risk appetite remained fragile. S&P 500 and Nasdaq-100 futures were down roughly 0.2% early Thursday, while Dow futures shed 72 points. European equities and the dollar also weakened as investors awaited concrete details of the draft trade pact, which still requires approval from Presidents Donald Trump and Xi Jinping. Analysts said both the geopolitical backdrop and the fate of the trade accord will likely steer market sentiment in the days ahead.