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 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.
The consumer price index rose 0.1% in May from April, less than the 0.2% estimate from economists polled by Dow Jones.
He added that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
Despite lower-than-expected U.S. data, stocks were little moved Wednesday, taking a break from a comeback rally. S. . statistics on inflation and the U. A. and China completing the initial draft of a potential trade deal.
30 points, or 0.1 percent, were taken off the Dow Jones Industrial Average. Whereas the Nasdaq Composite increased 0.2 percent, the SandP 500 remained unchanged. The S&P 500 was less than 2% below a record set in February and had increased in six of the previous seven trading days. The benchmark index was once around 20% below its record high.
The Dow Jones-surveyed economists predicted that the consumer price index would increase by 0.2 percent in May compared to 0.2 percent in April. Additionally, the core CPI—which excludes volatile food and energy prices—rose 0.1 percent, which was less than anticipated.
Goldman Sachs Asset Management’s global co-CIO of multi-asset solutions, Alexandra Wilson-Elizondo, stated that “May’s lower-than-expected inflation suggests the tariffs aren’t having a large immediate impact because companies have been using existing inventories or slowly adjusting prices due to uncertain demand.”.
“Inflation and job prints will confront the market while we wait for the 90-day tariff pause to end. According to Wilson-Elizondo, the Federal Reserve is likely to consider lowering interest rates in the future if inflation remains under control or if the labor market contracts.
U. A. and Chinese representatives came to an agreement following a round of negotiations in London. Under the framework, rare earth mineral exports would be authorized by China while the U.S. S. . would remove limitations on the transfer of cutting-edge technology to China.
President Donald Trump declared that the agreement with China is “done, subject to final approval with President Xi and me” in a post on Truth Social on Wednesday. We are receiving a total of 55% in tariffs, while China is receiving 10%, he continued. “..”.
In the trade agreement, he said, China and the United States will supply magnets and “any necessary rare earths” upfront. S. will make U accessible to Chinese students. S. university and college institutions. “A great WIN for both countries,” Trump wrote in the post, referring to the possibility of opening up China to American trade.
For investors who are still on edge about trade policy, the talks have been a major focus. The United States and China. S. . previously decided to temporarily reduce high tariffs on one another in May, but a finalized agreement has not yet been reached.
— Evelyn Cheng of CNBC provided reporting.
