U.S. stocks edged higher on Tuesday as renewed trade talks between the U.S. and China entered their second day. The Dow Jones Industrial Average finished the day up around 0.2%. The S&P 500 rose about 0.5%.
US-China trade talks: Donald Trump announces deal 'done' with China https://t.co/SqOsrc77Wz
— ET NOW (@ETNOWlive) June 12, 2025
The tech-heavy Nasdaq Composite climbed roughly 0.6%. Both the S&P 500 and Nasdaq are now close to their all-time closing highs. The highs are 6,144.15 for the S&P and 20,173.89 for the Nasdaq.
Mandy Xu joined @BloombergTV's The Close to share her analysis of the latest macro environment, emerging market volatility & activity in shorter-dated options (segment starts @ 40:00).
📺: https://t.co/zjqBpEQ8sq pic.twitter.com/9IaGqtITf4
— Cboe (@CBOE) June 11, 2025
They were set earlier this year. Stocks have been helped by strong corporate earnings and more positive growth forecasts. Optimism over potential tariff deals has also helped.
.@PressSec on the China trade negotiations: "What the President heard, he liked. China has agreed to open their markets to the United States separately of this deal… The President is reviewing the details of that with his trade team now." pic.twitter.com/LguuyFSvXU
— Rapid Response 47 (@RapidResponse47) June 11, 2025
However, the mood remains cautious as investors watch the latest trade developments closely.
Market Reverses on China Update to Trump's 'Done Deal'
Reports indicate China's new trade deal with the U.S. is less cut and dry than the president suggested.#trade #China #Trumphttps://t.co/TLxOWboaIg
— Chris Versace (@ChrisJVersace) June 11, 2025
U.S. stocks rise amid trade optimism
While a deal on access to China’s rare earth minerals is the U.S.’s priority, negotiators are dealing with difficult issues.
These issues have caused a rift between the two trading partners. On Monday, stocks on Wall Street went up and down after White House officials started discussions. President Trump cautioned, “China’s not easy.”
“The market is too sensitive,” said Fu Shifeng, investment director at Cheng Zhou Investment.
This suggests that volatile investor reactions might mean the talks are not going smoothly. Meanwhile, a measure of U.S. small-business optimism showed its first rise since September. This happened amid the trade truce with China.
However, concerns about Trump’s tax-and-spending policies added to uncertainty about the economic outlook. Investors are now looking ahead to the May Consumer Price Index (CPI) report on Wednesday. It will offer new insight into the state of inflation amid Trump’s changing trade policy.
Analysts expect that price pressures sped up last month.
