Wall Street Holds Steady Amid US-China Trade Talks/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near flat Monday as trade negotiations opened in London between the U.S. and China, stirring cautious optimism. Chinese stocks rose despite deflation and slowed exports, while Warner Bros. Discovery soared on news of a company split. Meanwhile, Tesla dropped as investor concerns mount over Elon Musk’s political tensions.
US-China Trade Talks Begin: Market Reaction Quick Looks
- S&P 500: Down 0.1%, hovering near record highs
- Dow Jones: Dropped 107 points (–0.3%)
- Nasdaq Composite: Rose slightly by 0.1%
- Warner Bros. Discovery: Jumped 11.8% on company split news
- IonQ: Rose 3.2% after $1B acquisition of Oxford Ionics
- Tesla: Fell 3.5% amid Musk-Trump political fallout
- Chinese Markets: Hong Kong up 1.6%, Shanghai up 0.4%
- China’s Economy: May exports slowed, deflation extended into fourth month
- 10-Year Treasury Yield: Dipped to 4.50% from 4.51%
Deep Look: US Stocks Flat as Trade Talks with China Open in London
New York
As U.S. and Chinese officials launched a critical round of trade talks Monday in London, U.S. stock markets remained largely flat, reflecting investor caution ahead of any breakthrough between the world’s two largest economies.
The S&P 500 slipped 0.1%, while the Dow Jones Industrial Average dropped 107 points (0.3%) in early morning trading. The Nasdaq Composite eked out a small gain of 0.1% as the markets balanced optimism over potential tariff relief with uncertainty over the outcome of this latest diplomatic round.
Trade Talks in Focus
This week’s London negotiations follow previous sessions in Switzerland, with officials now aiming to resolve long-standing trade disputes, particularly mutually imposed tariffs that have disrupted flows of goods ranging from semiconductors to industrial equipment.
Optimism around the possibility of tariff reductions under President Donald Trump has helped drive a recent rebound in equities. The S&P 500 has surged back, now just 2.5% below its all-time high, after falling nearly 20% earlier this year.
Still, markets are cautious. No formal agreements have been made, and investors are watching closely for signs of progress that could stave off another economic downturn.
Warner Bros. Discovery Soars on Breakup Plan
In corporate news, Warner Bros. Discovery stock surged 11.8% after the media giant announced it will split into two public companies by next year. One entity will focus on streaming and production, including Warner Bros. Television, HBO, and DC Studios, while the other will oversee traditional cable operations like CNN and TNT Sports, along with digital assets like Discovery+ and Bleacher Report.
The split is seen as a strategic pivot amid growing challenges from cord-cutting and streaming rivals.
IonQ Acquires Oxford Ionics in $1B Deal
Quantum computing firm IonQ gained 3.2% after announcing a $1.08 billion acquisition of U.K.-based Oxford Ionics. The deal — almost entirely stock-based — is expected to combine cutting-edge hardware with advanced networking, accelerating the push toward commercially viable quantum machines.
Tesla Drops Again as Musk-Trump Rift Deepens
Tesla shares fell 3.5%, continuing their downward trend as tensions rise between CEO Elon Musk and President Trump. Once allies, the two have reportedly clashed over manufacturing policy and tariffs, prompting fears that Tesla could face political headwinds during an already volatile market cycle.
Global Markets: Mixed but Resilient
While European indexes slipped modestly, Chinese markets posted gains despite mixed economic data:
- Hong Kong’s Hang Seng Index: +1.6%
- Shanghai Composite Index: +0.4%
China reported that May exports grew just 4.8%, down from April’s 8.2%, signaling a slowdown in global demand. Additionally, consumer prices fell 0.1% year-over-year, marking the fourth straight month of deflation — a sign of domestic economic weakness.
Despite these concerns, Chinese investors responded positively, possibly betting that the trade talks will stabilize cross-border commerce and reduce uncertainty.
Treasury Yields Hold Steady
In the bond market, U.S. Treasury yields were mostly unchanged. The yield on the 10-year note slipped slightly to 4.50% from 4.51% on Friday. The flat movement reflects investor hesitation ahead of any concrete trade outcomes.
Market Snapshot (as of 9:35 AM ET)
| Index/Asset | Change |
|---|---|
| S&P 500 | –0.1% |
| Dow Jones | –0.3% (–107 pts) |
| Nasdaq Composite | +0.1% |
| Warner Bros. Discovery | +11.8% |
| IonQ | +3.2% |
| Tesla | –3.5% |
| 10-Year Treasury Yield | 4.50% |
| Hang Seng Index | +1.6% |
| Shanghai Composite | +0.4% |
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