US stocks rise on China trade deal, tame inflation data
Wednesday morning saw a slight uptick in US stocks following positive developments on a trade deal with China and stable inflation data despite President Trump’s tariffs.
The Dow Jones Industrial Average rose by 133 points, or 0.3%, at 10:33 a.m. ET.
Both the S&P 500 and Nasdaq also experienced gains of 0.3% and 0.4%, respectively, buoyed by encouraging news earlier in the day.
President Trump announced that a trade deal has been struck with China following intense negotiations in London.
“Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!),” the president stated.
“We are getting a total of 55% tariffs, China is getting 10%. The relationship is excellent! Thank you for your attention to this matter!”
The agreement is set to reinstate a prior pact made in Geneva, which saw a reduction in US tariffs on Chinese imports to 30% from 145% and China lowering its tariffs on US goods to 10% from 125%.
The temporary deal was scheduled to remain in effect until August 10 to allow for further negotiations towards a comprehensive trade agreement between the two nations.
On the other hand, inflation data released on Wednesday morning showed modest increases, with prices managing to evade the impact of Trump’s tariffs.
The Consumer Price Index rose by 2.4% in May compared to the previous year, slightly up from 2.3% in the prior month but in line with expectations, as reported by the Bureau of Labor Statistics.
Core inflation, which excludes volatile food and energy prices, stood at 2.8%, falling below the anticipated 2.9% rise.
