US-China trade talks: Donald Trump announces deal 'done' with China https://t.co/SqOsrc77Wz
— ET NOW (@ETNOWlive) June 12, 2025
US stocks edged higher on Tuesday as renewed US-China trade talks entered their second day following an encouraging initial meeting. The Dow Jones Industrial Average closed up around 0.2%, while the S&P 500 rose about 0.5%. The tech-heavy Nasdaq Composite climbed roughly 0.6%.
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
Both the S&P 500 and Nasdaq are now within striking distance of their all-time closing highs—6,144.15 for the S&P (set on February 19, 2025) and 20,173.89 for the Nasdaq (set on December 16, 2024). Stocks have been buoyed by resilient corporate earnings, improved economic growth projections, and optimism over potential tariff agreements. Despite the positive trends, the mood remains cautious as investors closely monitor the latest trade developments.
A notable point of contention is access to China’s rare earth minerals, a priority for the US. Continued progress in negotiations is expected to alleviate market concerns, particularly given past unpredictability in trade policy. On Monday, stocks experienced volatility as discussions gained momentum, with President Trump warning that “China’s not easy.”
.@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
“The market is too sensitive,” noted Fu Shifeng, investment director at Cheng Zhou Investment.
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
“People seem to be speculating that the talks didn’t go well.”
Sentiment in the small-business sector has improved, with optimism rising for the first time since September. However, concerns persist regarding Trump’s tax-and-spending policies, which have added uncertainty to the economic outlook as reflected in the NFIB survey. Investors are eagerly awaiting the May Consumer Price Index (CPI) report, which is expected to provide fresh insights into inflation amid changes in trade policy.
In company news, Casey’s stock hit an all-time high on Tuesday after the company reported strong fiscal fourth-quarter results. Adjusted earnings grew 12.4% year-over-year to $2.63, with net sales increasing 11% to $3.99 billion.
S&P climbs amidst trade optimism
Same-store sales saw a 1.7% rise, driven by the company’s prepared food business, non-alcoholic beverages, and general merchandise. CEO Darren Rebelez attributed the growth to three main drivers: store expansion, improved efficiency, and the success of its pizza business. Casey’s plans to open 80 new locations in fiscal 2026 through mergers and acquisitions and new store construction.
Heading into the Consumer Price Index release, the Federal Reserve has noted a decline in inflation expectations for the next year, three years, and five years. While Federal Reserve Chair Jerome Powell has mentioned that well-anchored inflation expectations are crucial to achieving the 2% inflation target, BNP Paribas US economist James Egelhof voiced concerns over volatility in the data, suggesting political headlines might be influencing consumer views on inflation. Boeing’s stock erased gains despite reporting 303 new orders in May, the most since December 2023, with deliveries nearly doubling from the previous year.
This comes as Boeing prepares for the Paris Air Show. Disney shares jumped 2% following reports of Warner Bros. Discovery’s business moves.
IBM shares also saw a 2% rise after announcing the development of the world’s first large-scale quantum computer. Conversely, J.M. Smucker shares fell after projecting lower-than-expected full-year profits, compounded by rising tariffs impacting its coffee business. The S&P 500 remained just 2% away from its record high, buoyed by optimism over US-China trade talks.
Meanwhile, gold and silver prices took a breather from their recent rally, with gold hovering near $3,347 per ounce and silver near $36 per ounce. Bitcoin continued its climb, nearing $109,000 each. Overall, Tuesday’s market movements reflect a blend of cautious optimism as the US and China navigate complex trade discussions, with various sectors and individual stocks showing significant activity in response to the evolving economic landscape.
