Traders work on the floor of the New York Stock Exchange on June 10, 2025.
NYSE
Stocks were little changed on Wednesday, taking a breather from a comeback rally, despite softer-than-expected U.S. inflation data, and the U.S. and China reaching the preliminary outline of a possible trade agreement.
The Dow Jones Industrial Average advanced slipped 30 points, or 0.1%. The S&P 500 was flat, while the the Nasdaq Composite advanced 0.2%. The S&P 500 rose in six of the last seven trading days and was less than 2% below a record reached in February. At one point, the benchmark index was about 20% below a record.
The consumer price index rose 0.1% in May from April, less than the 0.2% estimate from economists polled by Dow Jones. Core CPI, which strips out volatile food and energy prices, also increased 0.1%, less than expected.
“Inflation in May was lower than anticipated, suggesting the tariffs aren’t having a large immediate impact because companies have been using existing inventories or slowly adjusting prices due to uncertain demand,” said Alexandra Wilson-Elizondo, global co-CIO of multi-asset solutions at Goldman Sachs Asset Management.
“As we wait for the 90-day tariff pause to pass, the market will be caught between inflation and job prints. If inflation stays under control or the job market weakens, the Federal Reserve will likely consider cutting interest rates down the road,” Wilson-Elizondo said.
U.S. and Chinese officials reached a consensus after a round of talks in London. As part of the framework, China would approve the exports of rare earth minerals while the U.S. would roll back restrictions on the sale of advanced technology to China.
President Donald Trump said in a Truth Social post on Wednesday that the deal with China is “done, subject to final approval with President Xi and me”. He added that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
As part of the trade agreement, he said that magnets and “any necessary rare earths” will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities. The prospect of opening up China to American trade is “a great WIN for both countries,” Trump said in the post.
The discussions have been a key focus for investors who remain on edge regarding trade policy. Both China and the U.S. previously agreed to temporarily lower high tariffs on one another in May, although a fully ironed-out agreement has yet to materialize.
— CNBC’s Evelyn Cheng contributed reporting.