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Indexes: Dow up 0.02%, S&P 500 up 0.10%, Nasdaq down 0.04%

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J.M. Smucker falls after downbeat annual profit forecast

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World Bank cuts global growth forecast for 2025

(Updates with afternoon trading levels)

By Kanchana Chakravarty and Sukriti Gupta

June 10 (Reuters) -

Wall Street's main indexes were subdued in volatile trading

on Tuesday as investors awaited a breakthrough in the ongoing

U.S.-China

trade talks

aimed at defusing a tariff dispute that has roiled global

markets this year.

Investors hoped for improved ties after relief from a

preliminary deal struck last month was overshadowed by

Washington's allegations that Beijing was blocking exports of

rare earth minerals critical to the aerospace, semiconductor and

defense sectors.

"Markets are taking a more upbeat tone on hints that we are

starting to see some signs of progress," said Laura Cooper, head

of macro credit and investment strategist at Nuveen.

"This is just going to underpin more choppy price action

because there's a lack of clarity on what an actual deal could

be."

At 11:39 a.m. ET the Dow Jones Industrial Average

rose 6.91 points, or 0.02%, to 42,768.67, the S&P 500

gained 5.96 points, or 0.10%, to 6,011.84 and the Nasdaq

Composite lost 8.49 points, or 0.04%, to 19,582.75.

Seven of the 11 major S&P 500 sub-sectors rose, led by a

1.9% gain in energy, tracking strength in oil prices.

Communication services stocks added 0.8%.

U.S. equities rallied sharply in May, with the S&P 500 index

and the tech-heavy Nasdaq marking their best monthly gains since

November 2023, helped by upbeat earnings reports and a softening

in President Donald Trump's harsh trade stance.

The S&P 500 is about 2% below all-time highs touched in

February, while the Nasdaq is about 2.6% away from the record

peaks it reached in December.

Investors are awaiting U.S. consumer prices data on

Wednesday for clues on the Federal Reserve's rate trajectory.

The World Bank slashed its global growth forecast for 2025

by 0.4 percentage point to 2.3%, saying higher tariffs and

heightened uncertainty posed a "significant headwind" for nearly

all economies.

Most megacap and growth stocks were mixed. Tesla

shares advanced 3.6%.

Insmed ( INSM ) shares jumped 27% after the drugmaker said

its experimental drug significantly reduced blood pressure in

the lungs and improved exercise capacity in patients in a

mid-stage study.

Jif peanut butter maker J.M. Smucker's shares were

set for their worst day on record after it forecast annual

profit below estimates. The company's shares were last down

12.3%.

Advancing issues outnumbered decliners by a 1.91-to-1

ratio on the NYSE and by a 1.47-to-1 ratio on the Nasdaq.

The S&P 500 posted eight new 52-week highs and two new

lows, while the Nasdaq Composite recorded 59 new highs and 35

new lows.