Stocks dip despite Trump’s notice of ‘DONE’ deal with China and better-than-expected inflation data
- Publish S& P 500 A decrease of 0.27 % on Wednesday, as investors have formed a small business deal with China as well as the inflation report that surpasses analysts’ expectations.
The stock markets fell on Wednesday despite the positive development apparently in the trade war between the United States and China, along with the best inflation report than expected in May. S&P 500 decreased by 0.27 %, the Nasdaq Stock Exchange fell 0.50 %, and Dow Jones closed today flat.
On Wednesday morning, president Donald Trump posted on the social media platform, referring to President Xi Jinping from China: “China has been dealt with with China, according to the final approval with President Xi and the President.”
Trump gave some details but said that China will continue to export rare magnets and ground materials to the United States and implement a 10 % tariff on American goods. In turn, the United States will carry out a 55 % tariff on exports from the People’s Republic of China to the United States and let Chinese students continue to attend American colleges and universities.
The United States and China had previously imposed a tariff at an increase of 145 % and 125 % on each other, respectively. The Trump administration also indicated that it will start canceling student visas for Chinese students in a move called by a Chinese “discrimination” foreign minister.
It is still unclear when the commercial deal between the great powers enter into force or whether the United States has offered any other concessions. Xinhua, a Chinese government news agency, said that the United States and China have “explicit and in -depth talks” in its evaluation of the agreement.
Meanwhile, the work statistics office issued a consumer price index report for the month of May. The US agency noted that inflation has crawled only 0.1 % from April to 2.4 %. This was a little less than the average estimate of 2.5 % of the economists surveyed by FactSet.
Analysts were concerned that the Trump aggressive group of definitions would increase the prices of American consumers. However, some warn that the complete impact of the White House trade war was not turned through the economy. “It is encouraging to see inflation more moderate, however we are aware of the possibility of some raising of tariffs in the coming prices in the back of the year,” wrote Rick Reader, chief global investment official in Blackrock -fixed global income, wrote:
The Wednesday market fell a week of gains. In June, the S&P 500 approached its highest level in February, which was shortly after the President’s opening 47.
This story was originally shown on Fortune.com
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2025-06-11 20:09:00
