Trade Talks Teeter: Stocks Slump Amid US-China Tariff Uncertainty

Wall Street stocks and the dollar faced declines on Wednesday as U.S. Treasury yields eased after President Donald Trump declared a U.S.-China trade deal as 'done', despite providing minimal details. The White House disclosed that the agreement permits various tariffs on imported Chinese goods, raising concerns among investors.

The unspecified details of the trade deal have left a potential for future tariff conflicts between the U.S. and China. Trump also mentioned agreements on resources and educational exchanges, but investors remain skeptical regarding the lasting impact of these arrangements.

Meanwhile, Treasury yields dropped significantly as demand for a $39 billion note sale remained robust. Market watchers are eyeing the Federal Reserve's next move, with a potential rate cut still unlikely amid ongoing economic volatility and shifting trade policies.

(With inputs from agencies.)