Wall Street Live: Stocks edge up on progress in US-China trade talks, inflation

New York, June 11, 2025 — Wall Street stocks ticked higher on Tuesday as renewed progress in US-China trade talks coupled with encouraging inflation data boosted investor sentiment. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all notched modest gains, continuing a cautiously optimistic trend in equity markets that had previously been under pressure from macroeconomic uncertainties.

Index Snapshot

• Dow Jones Industrial Average: +0.42% to 39,125.24

• S&P 500: +0.36% to 5,314.78

• Nasdaq Composite: +0.51% to 17,622.01

Trade Talks Signal Thaw in Tensions

Investors welcomed reports that top-level negotiators from the United States and China resumed dialogue this week, with early signs pointing to a constructive tone. According to sources familiar with the talks, both sides are exploring mutual tariff reliefs and technology-sharing frameworks.

“While we’re far from a comprehensive deal, any movement toward reducing economic friction between the two largest economies in the world is seen as a market positive,” said Mark Johnson, Chief Global Strategist at Brightpath Capital. “Trade-sensitive sectors like semiconductors and industrials led today’s rally.”

Shares of Nvidia (+1.4%), Caterpillar (+1.1%), and Boeing (+1.3%) were among the top gainers.

Inflation Data Adds to the Optimism

Contributing to the buoyant mood was the latest Consumer Price Index (CPI) report, which showed inflation cooling more than anticipated. CPI rose 3.1% year-over-year in May, down from April’s 3.4%, while core inflation — excluding volatile food and energy — fell to 2.9%, the lowest since late 2023.

The report reinforced expectations that the Federal Reserve may adopt a more dovish tone in upcoming meetings.

“This is the second straight month of decelerating inflation, giving the Fed room to pause and assess,” said Eliza Tran, senior economist at Global Macro Insights. “Markets are now pricing in a 60% chance of a rate cut by September.”

Interest-rate sensitive sectors, such as real estate and utilities, outperformed. The yield on the 10-year Treasury note dipped to 4.23%, signaling increased confidence in the Fed's inflation fight.

Tech and Consumer Stocks Lead the Way

Technology stocks continued to shine, with Apple (+0.9%), Microsoft (+0.8%), and Amazon (+1.2%) all rising. Investors seem reassured by robust earnings reports and the ongoing boom in AI infrastructure spending.

Meanwhile, consumer discretionary stocks such as Tesla (+2.3%) and Nike (+1.5%) also contributed to market gains, driven by resilient consumer demand and easing supply chain pressures.

“The consumer has proven remarkably resilient,” said Jenna Park, Portfolio Manager at Apex Growth Fund. “This suggests that even with higher interest rates, spending power hasn’t diminished as much as feared.”

Sector Highlights

• Technology: +0.7%

• Consumer Discretionary: +0.6%

• Financials: +0.2%

• Utilities: +0.9%

• Energy: -0.3%

Oil prices slipped slightly, with WTI crude closing at $72.86 per barrel, as concerns about a supply glut offset geopolitical tensions in the Middle East.

Analyst Outlook: Cautious Optimism Prevails

Despite Tuesday's gains, analysts caution that risks remain. Markets are still digesting mixed signals from global central banks, uncertainties surrounding the 2024 US election aftermath, and geopolitical developments in Taiwan and Ukraine.

“It’s a relief rally more than a breakout,” said Simon Keller, Head of Equity Strategy at Citadel Advisors. “Investors are embracing good news, but the macro backdrop remains complex.”

That said, Keller also noted that strong earnings, a softening inflation trend, and fiscal stability in Washington could set the stage for a summer rally — if trade negotiations continue to progress.

Investor Takeaway

For investors, Tuesday’s session provides a timely reminder of how rapidly sentiment can shift. As trade diplomacy makes tentative advances and inflationary pressures cool, risk appetite is slowly returning. But given the fragile backdrop, analysts recommend a balanced approach.

“Stay diversified, stay informed, and don't chase rallies blindly,” advised Tran. “There are opportunities, but also plenty of noise.”