Stocks exhibited a mixed performance on Wednesday following the release of a cooler-than-expected inflation report and positive updates regarding U.S.-China trade relations.
The Dow Jones Industrial Average saw a slight decline of 45 points, or 0.1%, while the S&P 500 and Nasdaq Composite experienced minor gains of 0.06% and 0.2%, respectively.
According to the Bureau of Labor Statistics, the consumer price index (CPI), which reflects the cost changes of everyday items like gasoline, groceries, and rent, increased by 0.1% in May compared to the previous month. On an annual basis, the CPI rose 2.4%, which was a modest uptick from April’s 2.3%. These figures were lower than what economists surveyed by LSEG had anticipated.
In trade news, U.S. Commerce Secretary Howard Lutnick announced that the U.S. and China have established a “framework” for implementing the trade deal achieved last month in Geneva. President Donald Trump subsequently shared on Truth Social that the deal is finalized, pending approval from both himself and President Xi.
The combination of the favorable inflation data and progress in U.S.-China trade negotiations may provide a reassuring outlook for the markets as investors navigate uncertain economic terrain. This could foster a sense of optimism as both inflation pressures are easing and constructive dialogue on trade continues.