Wall Street Pulls Back on Tentative US-China Deal
US stocks ended lower on Wednesday as investors took a breather from the recent rally, despite encouraging inflation data and a tentative US-China trade agreement.
The S&P 500 slipped 0.3% to snap 3-day win streak, the Nasdaq lost 0.5%, and the Dow finished flat. May’s Consumer Price Index rose just 0.1% month-over-month, below expectations, while core inflation also came in softer, reducing pressure on the Federal Reserve to hike interest rates.
On the trade front, US and Chinese negotiators reached a preliminary deal that includes China supplying rare earths and the US easing restrictions on Chinese student visas. Still, the agreement lacked clarity on tariffs and export controls, dampening investor optimism.
President Trump said the deal was “done,” pending final approval from him and President Xi, while Commerce Secretary Howard Lutnick indicated a decision could come within days.
Sector-wise, consumer discretionary and materials stocks led the decline, while energy outperformed.
Source: Trading Economics
