05:01 PM EDT, 06/11/2025 (MT Newswires) -- The Nasdaq Composite and the S&P 500 registered their first declines in four days on Wednesday as markets digested new inflation data and assessed a preliminary trade deal between the US and China.

The Nasdaq ended down 0.5% at 19,615.9, while the S&P 500 fell 0.3% to 6,022.2. The Dow Jones Industrial Average was flat at 42,865.8. Most sectors were in the red, led by consumer discretionary, while energy saw the biggest gain.

In economic news, US consumer inflation unexpectedly decelerated last month, weighed down by lower energy prices, government data showed. Annually, inflation accelerated to 2.4%, in line with Wall Street's view, from 2.3% in April.

In a social media post, President Donald Trump said the inflation report showed "great numbers" and that the Federal Reserve should lower its policy rate by a full percentage point.

"The president has been saying this for a while, but it's even more clear: the refusal by the Fed to cut rates is monetary malpractice," Vice President JD Vance said in a social media post.

Markets are widely anticipating the central bank to leave its benchmark lending rate unchanged next week, according to the CME FedWatch tool.

The official producer prices report for May is scheduled to be released Thursday.

"Policymakers remain in a holding pattern until they gain more certainty on how the administration's trade and fiscal policies will impact both the real economy and inflation trajectory," TD Economics said Wednesday. "With the labor market still healthy and near-term inflation likely to drift higher, the prospect of a summer rate cut has faded."

US Treasury yields were lower, with the two-year rate dropping 8.2 basis points to 3.95% and the 10-year rate falling 6.1 basis points to 4.42%.

US and Chinese officials have agreed on a framework for implementing the pact the two countries reached in Switzerland last month. Trump said that China will supply rare earths upfront as part of a trade agreement that is subject to his approval and that of his Chinese counterpart, Xi Jinping.

"Our deal with China is done," Trump wrote in a social media post. "We are getting a total of 55% tariffs, China is getting 10%."

Tariffs on Chinese imports will remain unchanged as Washington and Beijing finalize a trade deal, Commerce Secretary Howard Lutnick suggested on CNBC's "Money Movers."

West Texas Intermediate crude oil jumped 4.5% to $67.89 a barrel.

"Oil gained on optimism that easing trade tensions could support demand," D.A. Davidson said in a note to clients.

Commercial crude stockpiles in the US decreased more than expected last week even as propane and propylene and motor gasoline inventories increased, government data showed.

In company news, Starbucks ( SBUX ) has drawn "a lot of interest" in its move to explore a partnership with outside investors for a minority stake in its China business, the Financial Times reported, citing Chief Executive Brian Niccol. The company's shares climbed 4.3%, the second-biggest gainer on the S&P 500.

General Motors ( GM ) shares rose 1.9%. The automaker said late Tuesday it planned to invest $4 billion in three manufacturing facilities in the US over the next two years as part of its efforts to boost domestic production of its gas and electric vehicles.

Chewy (CHWY) shares slumped 11% as the online pet store company maintained its full-year sales outlook after reporting better-than-expected fiscal first-quarter results.

Gold was up 0.8% at $3,368.80 per troy ounce, while silver fell 0.8% to $36.35 per ounce.