Stocks rose on Tuesday as investors awaited more insight into trade talks between the U.S. and China.
The Dow Jones Industrial Average rose 51 points, or 0.1%. The S&P 500 rose about 0.3% along with the Nasdaq Composite
Talks between U.S. and Chinese officials in London continued for a second day. U.S. Commerce Secretary Howard Lutnick said Tuesday that discussions were "going well, and we're spending a lot of time together" and that he expected talks to continue throughout the day.
Traders are watching the discussions for signs of a deal that doesn't involve the countries imposing high tariffs on each other. The two countries agreed last month to temporarily cut their tariffs, seen as a major breakthrough in trade negotiations after U.S. President Donald Trump unveiled plans for broad and steep levies on imports.
Stocks have rallied so far in June as investors remain hopeful about ongoing global trade talks and the strength of the overall market. The gains have been driven by strong corporate earnings results and a resurgence in tech stocks, given a recent spate of artificial intelligence announcements.
"Technically, stocks have been on a nice path past key levels to get back on track. Longer-term, stocks started the week just above their downtrend line back to their yearly highs," said Jay Woods, chief global strategist at Freedom Capital Markets.
"This rally looks like many other tech names trying to get back to their previous highs. The good news is that given the change in trajectory, even the downturn seems to have a soft landing and a good entry point from a risk/reward perspective," Woods added.
To be sure, some investors are concerned that current tariffs could push inflation higher in the near term, potentially weighing on equities.
"Right now, while the picture is not entirely clear, the tariffs that could be enacted are in place," said Mark Malek, chief investment officer at Siebert Financial. "The Fed is concerned that the true inflationary impact is yet to be seen. Based on the complex tariff collection currently in place, we expect aggregates such as autos, apparel and food to show early signs of tariff-induced inflation."(alg)
Source: CNBC
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