Wall Street Hovers as Markets Await US-China Trade Clarity/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks remained mostly flat Tuesday as investors awaited the outcome of U.S.-China trade negotiations in London. The S&P 500 and Nasdaq inched higher while the Dow was largely unchanged. Trade uncertainty continues to weigh on markets and corporate earnings.
US-China Trade Talks + Market Impact Quick Looks
- U.S. stocks hold steady as trade talks with China extend into a second day
- The S&P 500 rose 0.2%, Nasdaq up 0.3%, Dow nearly flat
- Markets near record highs after rallying on hopes of tariff relief
- Commerce Secretary Howard Lutnick says talks are “going well” in London
- Many tariffs paused but uncertainty remains for global businesses
- Designer Brands pulls 2025 outlook, citing “global trade instability”
- DSW owner’s stock dropped 24.7% on wider-than-expected losses
- J.M. Smucker shares fell 10.5% after weak revenue outlook
- Tesla rebounded 2.5% after Elon Musk–Trump fallout fears eased
- TSMC stock jumped 2.5% after reporting 40% YoY revenue growth
- Casey’s General Stores surged 14.4% on strong earnings from food sales
- Bond yields eased, with the 10-year Treasury falling to 4.44%
Deep Look: Wall Street Holds Steady Amid US-China Trade Talks
NEW YORK — Wall Street remained in a holding pattern Tuesday morning as investors cautiously awaited results from ongoing U.S.-China trade talks in London. Stocks posted modest gains, with the S&P 500 edging up 0.2%, the Nasdaq adding 0.3%, and the Dow Jones Industrial Average hovering near flat by 10 a.m. Eastern time.
The mood reflects a market reluctant to commit until it sees clear signals from two of the world’s largest economies. With high-stakes negotiations underway, any major outcome could shift the global financial landscape.
Markets Nearing Recovery—But Waiting on Confirmation
After tumbling nearly 20% two months ago following President Donald Trump’s surprise tariff announcement, stocks have surged back on expectations that many of those levies could be rolled back through trade deals.
Those hopes brought the S&P 500 within 2.1% of its February record high, but investors now want substance to match the speculation. U.S. Commerce Secretary Howard Lutnick told reporters Tuesday that the discussions are “going well” and are expected to continue all day in London.
Trade Uncertainty Still Weighs on Businesses
Despite a pause on many announced tariffs, the uncertainty around global trade policy continues to cloud business planning and investor sentiment. On Tuesday, Designer Brands, parent of DSW shoe stores, became the latest to withdraw its full-year forecast for 2025.
CEO Doug Howe cited “persistent instability and pressure on consumer discretionary spending,” after the company reported a wider-than-expected loss and weaker revenues. The result? A 24.7% plunge in its stock price.
Mixed Signals from Other U.S. Companies
Retail and consumer sectors showed divergent paths. J.M. Smucker fell 10.5% after missing revenue forecasts and offering a weak outlook for the coming year, despite beating earnings expectations.
Meanwhile, Tesla saw a 2.5% gain following a dip last week triggered by concerns over CEO Elon Musk’s strained relationship with Trump—and speculation about potential government retaliation.
TSMC (Taiwan Semiconductor Manufacturing Co.), a barometer for global chip demand, rose 2.5% after reporting a 40% year-over-year revenue surge in May, suggesting strength in tech manufacturing.
Casey’s General Stores, a Midwest-based convenience chain, jumped 14.4% after topping quarterly earnings expectations, with solid performance in its food and beverage categories, especially hot sandwiches.
Small Businesses Show Glimmers of Hope
A Tuesday report from the National Federation of Independent Business (NFIB) revealed a slight uptick in small-business optimism for May. Chief economist Bill Dunkelberg noted that while economic uncertainty persists, more owners reported positive expectations for sales growth and better business conditions.
Global Markets and Bonds Reflect Caution
Stock markets across Europe and Asia posted modest and mixed changes as global investors monitored developments from the U.S.-China negotiations. In the bond market, the yield on the 10-year Treasury note fell to 4.44%, down from 4.49% Monday, reflecting some flight to safety amid ongoing uncertainty.
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