Stocks Hold Steady Amid U.S.-China Trade Deal and Inflation Expectations
U.S. stock markets remained steady after President Trump announced a trade deal with China and a Consumer Price Index report showed a minor increase in May. The agreement entails tariffs on Chinese goods and reciprocal tariffs. Tesla's shares rose, while oil approached a seven-week high.
Wall Street stocks showed little movement on Wednesday as President Donald Trump confirmed a trade deal with China, reinforcing steady market conditions. New data showed a slight rise in consumer prices, maintaining confidence amid a potential increase in inflation due to tariffs.
The agreement includes various tariffs, such as a 55% tariff on Chinese goods entering the U.S., while China will implement a 10% tariff on U.S. imports. Moreover, Trump mentioned agreements on supplying magnets and rare earth minerals, as well as facilitating Chinese students studying in U.S. universities.
Financial markets remained largely unaffected, with the S&P 500 and Dow Jones Industrial Average showing minimal changes and the Nasdaq Composite rising slightly. Meanwhile, oil prices reached new heights following the trade talks' outcome, signaling market optimism despite complex U.S. economic dynamics.
(With inputs from agencies.)
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