Wall Street Soars Amid Trade Talks and Inflation Eases
Wall Street's main indexes rose following a tame inflation report and speculation over Sino-U.S. trade negotiations. The report showed lower-than-expected inflation in May, with expectations of future increases due to tariffs. Traders eye interest rate cuts while tech stocks lead gains, highlighted by Tesla's growth and recent trade agreements.
Wall Street experienced a surge on Wednesday as easing inflation concerns provided relief to investors amid ongoing Sino-U.S. trade discussions. A report indicating minimal inflation growth in May helped calm markets, although future inflation increases are anticipated due to import tariffs imposed by the Trump administration.
Traders have factored in potential interest rate cuts, supported by data from the CME Group's FedWatch tool. Both the S&P 500 and Nasdaq indices hovered near all-time highs, reflecting optimism as U.S. and Chinese officials reached a framework agreement to resume their tariff truce.
The U.S. and China have outlined provisional terms, including significant tariffs on each other's imports. Investors remain eager for further details from ongoing meetings, hopeful for resolution in the protracted trade tensions affecting global markets.
(With inputs from agencies.)
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