*

J.M. Smucker falls after downbeat forecast

*

World Bank cuts global growth forecast for 2025

*

S&P 500 +0.55%, Nasdaq +0.63%, Dow +0.25%

(Updates with prices after end of session)

By Noel Randewich and Sukriti Gupta

June 10 (Reuters) - The S&P 500 ended higher on Tuesday,

lifted by a rally in Tesla as investors bet on positive results

from U.S.-China trade talks aimed at defusing a tariff dispute

that has roiled global markets this year.

Wall Street expects improved trade terms 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.

U.S. Commerce Secretary Howard Lutnick said the trade talks

were going well and he hoped they would end on Tuesday night,

but said they could run into Wednesday.

The U.S. stock market has surged in recent weeks, recovering

from an April slump sparked by U.S. President Donald Trump's

"Liberation Day" sweeping global tariffs.

With investors betting the United States will reach trade

agreements that reduce Trump's steep trade barriers, the S&P 500

is now trading just below its February record highs.

"The expectation is that they'll figure this out, and that

the Liberation Day tariff levels are never going to be seen. You

can't get to market valuations where we've got them and have

those tariff levels get anywhere close to reality," said Scott

Ladner, chief investment officer at Horizon Investments.

Shares of Wall Street's most valuable companies were mixed.

Tesla rose 5.6%, while Microsoft ( MSFT ) slipped 0.4%.

Alphabet climbed 1.4% after Reuters reported that OpenAI

plans to add Alphabet's Google cloud service to meet its growing

needs for computing capacity.

The S&P 500 climbed 0.55% to end the session at 6,038.81

points.

The Nasdaq gained 0.63% to 19,714.99 points, while the

Dow Jones Industrial Average rose 0.25% to 42,866.87 points.

Of the 11 S&P 500 sector indexes, 10 rose, led by energy

, up 1.77%, followed by a 1.19% gain in consumer

discretionary.

Volume on U.S. exchanges was relatively heavy, with 18.5

billion shares traded, compared to an average of 17.9 billion

shares over the previous 20 sessions.

Investors are awaiting U.S. consumer prices data on

Wednesday for clues to 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.

Insmed ( INSM ) shares jumped almost 29% 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.

J.M. Smucker's shares tumbled 15.6% after the Jif

peanut butter maker forecast annual profit below estimates.

Snap ended down 0.1% after the social media

platform said it would launch its first-ever smart glasses for

all consumers next year, ratcheting up competition with Meta

in the wearable technology market.

Advancing issues outnumbered falling ones within the S&P

500 by a 2.0-to-one ratio.

The S&P 500 posted 12 new highs and 2 new lows; the

Nasdaq recorded 75 new highs and 45 new lows.