Stocks edged higher Tuesday as investors waited for more insight on trade discussions between the U.S. and China.
Talks between U.S. and Chinese officials in London continued for the second day.
Traders are monitoring the discussions for signs of a deal that doesn’t involve the countries enforcing lofty tariffs on one another.
Stocks have rallied so far in June as investors remain hopeful about ongoing global trade discussions and overall strength in the market.
To be sure, some investors are concerned that the current tariffs could drive inflation higher in the near future, potentially weighing on equities.
Tuesday saw stocks rise slightly as investors awaited further information on the trade talks between the U.S. S. . China as well.
A gain of 51 points, or 0.1 percent, was made by the Dow Jones Industrial Average. In tandem with the Nasdaq Composite, the SandP 500 increased by about 0.3 percent.
The conversations between U. A. and Chinese officials carried on for the second day in London. “U.”. A. According to Commerce Secretary Howard Lutnick, the talks are “going well, and we’re spending lots of time together” and he anticipates that they will go on all day Tuesday.
Traders are keeping an eye on the talks for indications of a deal that does not entail the countries imposing high tariffs on each other. Last month, both countries decided to temporarily reduce their duties, which was viewed as a significant trade negotiation breakthrough following U.S. S. President Donald Trump announced his proposal to impose steep and wide import taxes.
As investors maintain optimism about the ongoing global trade discussions and the general strength of the market, stocks have risen so far in June. Due to the recent wave of announcements about artificial intelligence, gains have been driven by both a recovery in tech stocks and strong corporate earnings results.
As far as technical analysis is concerned, shares have been eclipsing important levels to get back on track. According to Jay Woods, chief global strategist at Freedom Capital Markets, “longer-term, they began the week just above its downtrend line, returning to its annual highs.”.
“The rally appears to be a similar attempt by numerous other tech companies to return to their previous peak. Even weakness appears to have a soft landing spot and a good entry point from a risk/reward perspective, which is good news given the change in trajectory,” Woods continued.
Indeed, some investors are worried that the current tariffs may raise inflation in the near future, which could have an impact on stocks.
According to Mark Malek, chief investment officer of Siebert Financial, “enforceable tariffs exist today, even though the picture is not entirely clear.”. The fact that the true inflationary effects have not yet materialized worries the Fed. Given the complicated array of tariffs currently in place, we would anticipate the first indications of tariff-driven inflation to appear in aggregates like foods, clothing, and automobiles. “,”.
