US stocks were held steadily as they took place in London as the second day of the second trade talks between the US and China.
The Dow Jones industrial average rose 0.25%, or the S&P 500 to 105.11 points, an increase of 0.55%. The NASDAQ index outperformed with a gain of 0.63% and is now about 285 points away from retrieving 20,000 levees.
Commerce Secretary Howard Lutnick explained us – China’s trade negotiations say “really, really well” and suggest that the resolution may be near. Export control remains at the heart of the debate. US authorities are calling for the release of rare earth materials in Beijing, while China is calling for ease of access to American semiconductors.
Still, the mood was cautious on Wall Street, as investors were closely watching the signs of a breakthrough. Meanwhile, Chinese markets showed new volatility as they suddenly plummeted to stocks early on Tuesday, reflecting investors’ nerves.
The market is sensitive to signals from lectures. Despite optimism from officials, President Trump warned Monday that he hoped “China will not be easy.”
Small emotions in the US
On the economic front, a survey from the National Federation of Independent Businesses showed a slight rebound to small US sentiment in May, the first increase since September.
The improvement was linked to ease tariff concerns and expectations regarding Trump’s tax and spending bills, but some businesses remained wary of the broader outlook.
However, the World Bank has reduced its 2025 US growth forecast to 1.4%, citing ongoing trade uncertainty.
Elsewhere, Blackstone announced plans to invest up to $500 billion in Europe over the next decade, citing hopes of accelerating the region’s growth.
Investors are also preparing for the release of the Consumer Price Index Report in May on Wednesday. Analysts expect price pressure to increase.
