Financial institutions are anxiously anticipating updates from the China-U.S. negotiations
In the heart of Washington DC, the New York Stock Exchange shined on a Tuesday, spirits high as traders kept a keen eye on the progress of trade talks between the US and China, unfolding in London for the second day.
By 9:40 AM ET, the Dow Jones remained steady (+0.02%), the NASDAQ gleamed with a 0.27% incline, and the broader S&P 500 glimmered with a 0.19% rise.
"The market's playing a waiting game," opines Art Hogan of B. Riley Wealth Management, speaking to AFP. "There's little eagerness at the start, with investors awaiting the upcoming trade talk details."
Analysts at Briefing.com concurred, noting the suspense surrounding the discussions. The formidable duo, the US and China, began their negotiations in London behind closed doors, aiming to reinforce the tentative truce established last month in Geneva amidst their differences.
The morning chronicles of the London talks commenced on the 11th of June, 2025. "My gut tells me positive vibes. Everything's going swimmingly with China," President Donald Trump shared with the press on the prior evening.
The outcome of these dialogues is expected to serve as the next pivotal event for the American market, Hogan emphasizes.
Investors eagerly anticipated significant progress akin to the Swiss talks. Back then, Beijing and Washington had agreed to a drastic reduction in their respective tariffs for a 90-day period.
Meanwhile, the economic data front is also buzzing, with several essential points on the horizon. Inflation will be revealed on Wednesday (CPI index), the Producer Price Index (PPI index) will be unveiled on Thursday, and a preliminary viewing of consumer confidence will be presented on Friday.
"The CPI and PPI from last month aligned with expectations, and we didn't notice any escalation," Hogan recalls. "It's intriguing to observe whether tariffs triggered inflation, particularly on goods," the analyst adds.
On the bond market, the yield on 10-year US Treasury notes eased slightly, sitting at 4.44%, a decrease from 4.47% the day prior.
Apple paddled forward with a slight increase (+0.15% at $201.75), yet some investors felt a sense of disenchantment with the company's initial unveilings at its Worldwide Developers Conference (WWDC), which commenced on Monday. Already trailing in the race for generative AI, Apple continues to tread cautiously, leaving analysts craving more.
McDonald's slipped (-1.24% at $300.94), following analysts at Redburn Atlantic downgrading their recommendation, expressing concerns over shifts in consumption patterns due to weight loss drugs and inflation.
Paramount dipped 0.46% to $11.94 after whispers of job cuts surfaced, with speculation of a 3.5% workforce reduction on the horizon.
Electric vehicle pioneer Tesla powered up (+1.50% at $313.21) as its autonomous robotaxis prepared for deployment in Austin, Texas, within days. Last week, the company experienced a dip following a spat between CEO Elon Musk and President Trump.
"Given the economic data in view, including the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday, financial analysts are keen on assessing any potential impact of tariffs on inflation rates."
"In the realm of technology and business, Silicon Valley giants such as Apple, Tesla, and others are closely watching the progress of trade talks between the US and China, as their innovative advancements often rely on global economic stability and technological collaboration."
