Traders work on the floor of the New York Stock Exchange on June 10, 2025.
NYSE
Stocks closed lower on Wednesday as traders weighed a preliminary U.S.-China trade agreement and new inflation data. The market’s recent run higher took a breather as major indexes ended the session near previous closing levels.
The S&P 500 lost 0.27% to end the day at 6,022.24, snapping a three-day win streak. The Nasdaq Composite fell 0.5% to 19,615.88. The Dow Jones Industrial Average shed a mere 1.1 points, closing at 42,865.77.
The consumer price index rose 0.1% in May from April, less than the 0.2% estimate from economists polled by Dow Jones. Core CPI, which strips out volatile food and energy prices, also increased 0.1%, less than expected.
“Inflation in May was lower than anticipated, suggesting the tariffs aren’t having a large immediate impact because companies have been using existing inventories or slowly adjusting prices due to uncertain demand,” said Alexandra Wilson-Elizondo, global co-CIO of multi-asset solutions at Goldman Sachs Asset Management.
“As we wait for the 90-day tariff pause to pass, the market will be caught between inflation and job prints. If inflation stays under control or the job market weakens, the Federal Reserve will likely consider cutting interest rates down the road,” Wilson-Elizondo said.
Discussions between U.S. and Chinese officials have been a key focus this week for investors who remain on edge regarding trade policy.
Officials reached a consensus after two days of talks in London, but said that they will seek approval on the framework from the U.S. and Chinese presidents before implementing it. As part of the framework, China would approve the exports of rare earth minerals while the U.S. would roll back restrictions on the sale of advanced technology to China.
Even as the framework is being finalized, Commerce Secretary Howard Lutnick said Wednesday that U.S. tariffs on Chinese imports will not change from their current levels.
President Donald Trump said earlier in a Truth Social post that the deal with China is “done, subject to final approval with President Xi and me.” As part of the deal framework, he said that magnets and “any necessary rare earths” will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities, adding that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”
U.S. crude oil futures rose more than 4% on Wednesday afternoon on news of escalating tensions in the Middle East, particularly after sources told Reuters that the U.S. is preparing a partial evacuation of its embassy in Iraq due to heightened security risks in the region.
— CNBC’s Evelyn Cheng contributed reporting.
