Stocks Climb As Wall Street Watches Trump Trade Talks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks rose Wednesday as Trump’s extended trade negotiation timeline calmed market jitters. Tech shares led gains, while energy stocks slipped and bond yields edged lower. Investors awaited Fed minutes for insight into interest rates amid ongoing tariff uncertainty.
Quick Look
- Stocks climb as Wall Street tracks Trump’s extended trade talks, easing tariff fears.
- Tech leads gains, with Nvidia and Microsoft boosting indexes while energy lags.
- Investors eye Fed minutes for clues on rates amid tariff-driven economic uncertainty.
Stocks Climb As Wall Street Watches Trump Trade Talks
Deep Look
U.S. stocks opened higher Wednesday as Wall Street kept a close eye on President Donald Trump’s push to secure new trade agreements around the world.
The S&P 500 gained 0.7% in early trading, rebounding from a modest loss the previous day and staying close to last week’s record high fueled by stronger-than-expected jobs data. The Dow Jones Industrial Average rose 224 points, or 0.5%, while the tech-heavy Nasdaq composite led the market with a 1.1% increase.
Technology Stocks Lead Gains
Tech giants fueled much of the morning’s rally. Nvidia shares climbed 2.5%, while Microsoft advanced 1.6%, helping offset losses in energy and other sectors.
Bond yields moved lower, with the yield on the 10-year Treasury note slipping to 4.38% from 4.40% on Tuesday.
Trade Talks Dominate Market Focus
Markets remained focused on the Trump administration’s trade negotiations. The White House had initially set Wednesday as the deadline for countries to strike deals with the U.S. or face steep new tariffs. However, with only two new agreements finalized since April—one with the United Kingdom and another with Vietnam—Trump has pushed the negotiation window back to August 1.
The deadline extension has provided temporary relief to investors, calming market volatility that spiked during the tariff escalations this spring. Still, the possibility of more aggressive tariffs looms over the global economy, raising concerns about potential slowdowns or even recession.
On Tuesday, President Trump hinted at significant new tariff actions, including a proposed 200% levy on pharmaceutical drugs and a 50% tariff on copper imports to match rates already imposed on steel and aluminum. Copper prices eased slightly Wednesday after spiking the previous day. Shares in copper mining giant Freeport-McMoRan dipped 0.7%.
Corporate News Adds To Market Moves
Outside the trade headlines, corporate developments injected fresh energy into the market. Pharmaceutical giant Merck announced plans to acquire U.K.-based Verona Pharma in a $10 billion deal that would expand Merck’s pipeline to include Ohtuvayre, a treatment for chronic obstructive pulmonary disease (COPD). Verona shares soared more than 20% following the news, while Merck gained 2.1%.
Meanwhile, Delta Air Lines will unofficially kick off the next earnings season Thursday. Analysts expect Delta’s second-quarter profits to decline compared to last year, reflecting scaled-back travel demand as consumers tighten budgets in response to tariff uncertainty.
Fed Minutes Awaited
Investors are also anticipating the Federal Reserve’s release of minutes from its June policy meeting later Wednesday. The central bank left interest rates unchanged for the fourth consecutive time, reflecting caution amid uncertainty over how Trump’s tariff policies might ripple through the job market and broader economy.
Global Markets Mixed
International markets were mixed overnight. European indexes traded broadly higher on Wednesday, while Asia ended the session with uneven results.
U.S. benchmark crude oil fell 0.7% in early trading. Brent crude, the global benchmark, slipped 0.6%.
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