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Updates before markets open

By Kanchana Chakravarty and Sukriti Gupta

June 11 (Reuters) - The S&P 500 and Nasdaq were on track to open near record levels on Wednesday, as a cooler-than-expected inflation report calmed concerns around tariff-driven price pressures and fanned expectations for interest rate cuts.

The Consumer Price Index $(CPI.UK)$ increased 0.1% in May after rising 0.2% in April, while economists polled by Reuters had forecast a 0.2% increase for last month. Annually, headline inflation stood at 2.4%, compared with an estimated 2.5% rise.

"Longer term there's still concerns about Trump's tariffs being inflationary but this report was better than expected and it fuels hope that the Federal Reserve will be able to step in with rate cuts later on this year," said Robert Pavlik, senior portfolio manager at Dakota Wealth.

Following the data, traders of short-term interest-rate futures priced in a 70% chance of a quarter-point reduction in the Fed policy rate by September, compared with 57% earlier. Policymakers are widely expected to keep rates unchanged next week.

A day after officials from Washington and Beijing agreed on a framework to put their trade truce back on track, President Donald Trump said the U.S. deal with China was done, with Beijing to supply magnets and rare earth minerals.

Investors are awaiting more details from the trade talks aimed at mitigating tit-for-tat tariffs that have disrupted global markets for much of the year.

The U.S. stock market has rallied in recent weeks, recovering from a slump in April sparked by Trump's "Liberation Day" tariffs.

The S&P 500 remains about 1.7% below all-time highs touched in February, while the Nasdaq is 2.3% below its record peaks reached in December.

At 08:54 a.m. ET, Dow E-minis YMcv1 were up 61 points, or 0.14%, S&P 500 E-minis EScv1 were up 12.75 points, or 0.21%, and Nasdaq 100 E-minis NQcv1 were up 58.5 points, or 0.27%.

Among stocks, Tesla TSLA.O advanced 2.7% premarket after CEO Elon Musk said he regrets some of the posts he made last week about Trump, following an abrupt rift that has roiled the electric-vehicle maker's shares.

Software development platform provider GitLab GTLB.O fell 12.8% after reporting quarterly results.

Shares of videogame retailer GameStop GME.N fell 2.7% after it reported a decline in first-quarter revenue.

Summit Therapeutics SMMT.O was down marginally after brokerage Leerink Partners started coverage on the drug developer with an "underperform" rating.

(Reporting by Kanchana Chakravarty in Bengaluru; Editing by Devika Syamnath)

((Kanchana.Chakravarty@thomsonreuters.com;))