Stocks Gain as US Negotiators Signal Progress on US-China Talks – US Market Wrap

Wall Street investors, who were closely monitoring trade talks between the United States and China, drove stocks higher after Commerce Secretary Lutnick said the negotiations went extremely well. Treasuries and the dollar made minor movements ahead of a key inflation report.

The S&P 500 finished less than 2% behind its previous record. Tesla led the gains in megacaps. Bonds barely moved following the $58 billion sale of three-year notes. This is the first of three offerings, culminating in Thursday’s sale of 30-year debt.

Talks between the US and China continued into their second day in London, with a Treasury official saying the teams were working out technical details. When asked if negotiations would end on Tuesday, Lutnick replied, “If necessary, we’ll be here tomorrow, but I hope they end this evening.”

Data released on Wednesday are expected to show that US consumers experienced slightly higher inflation in May, particularly for merchandise, as companies gradually passed on higher import duties. Prices for goods and services, excluding volatile food and energy costs, increased by 0.3% in May, the most in four months.
According to the median projections, core inflation, which is regarded as a better indicator of underlying inflation, IS expected to rise for the first time this year to 2.9% on an annual basis.