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US Equity Indexes Advance as Talks to Resolve Trade War With China Enter Second Day
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US Equity Indexes Advance as Talks to Resolve Trade War With China Enter Second Day
Jun 10, 2025 10:58 AM

01:41 PM EDT, 06/10/2025 (MT Newswires) -- US stocks rose, with energy and healthcare topping gainers after midday on Tuesday, as investors leaned toward a positive outcome from the ongoing trade negotiations with China.

The Nasdaq Composite rose 0.4% to 19,661.3, the S&P 500 climbed 0.4% to 6,029.5, and the Dow Jones Industrial Average was up 0.2% to 42,861.8. The industrials sector was the sole decliner intraday amid a broad-based rally.

Investors' focus is on the second day of trade discussions in London between teams led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Officials from both sides are trying to reach a deal to end the tariff battle between the world's two largest economies.

Investors are awaiting the outcome of trade talks aimed at "cooling a tariff dispute that has bruised global markets this year," a note from D. A. Davidson said.

Any unwillingness to include sophisticated chips made by Nvidia (NVDA) could end up being the sticking point as these provide processing power to the artificial intelligence landscape, where the US is battling China for supremacy, Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in a note. "Should the talks actually produce a substantial deal, traders would deem that to be very good news and risk-reducing."

US Treasury yields were mixed intraday, with the 10-year down 1.4 basis points to 4.48% and the two-year steady at 4%.

The ICE US Dollar Index rose 0.2% to 99.09.

Gold futures fell 0.4% to $3,342.4 per ounce.

West Texas Intermediate crude oil futures climbed 0.9% to $65.86 a barrel.

In economic news, Redbook US same-store sales jumped 4.7% from a year earlier in the week ended June 7 after a 4.9% gain in the previous week.

The National Federation of Independent Business's monthly Small Business Optimism Index rose to 98.8 in May from 95.8 in April. It was at 90.5 a year earlier.

"Although optimism recovered slightly in May, uncertainty is still high among small business owners," said NFIB Chief Economist Bill Dunkelberg. "While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth."

On Wednesday, the Consumer Price Index from the Bureau of Labor Statistics will provide insights into inflation trends during May, with investors looking for clues about the impact of tariffs on the monetary policy path ahead.

In company news, J.M. Smucker (SJM) provided a full-year earnings outlook below Wall Street's expectations, while the food producer's fiscal Q4 sales fell below market estimates. Shares sank 13% intraday, the worst performer on the S&P 500.

Walt Disney (DIS) said it agreed to pay an additional $438.7 million to close its purchase of NBC Universal's 33% interest in Hulu, following the conclusion of a third-party appraisal process.

"We are pleased this is finally resolved," Chief Executive Robert Iger said late Monday, referring to the end of the appraisal process that included the possibility of Disney paying an additional $5 billion to NBC to acquire the stake. Disney's shares jumped 3.7% intraday, the biggest gainer on the Dow.

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