The US and China agree to a transaction that lowers tariff levels
The US and China agreed to a trade agreement after face-to-face meetings with senior economic officials.
After inflation eased to a four-month low in April, US stocks were mixed, but the narrow scale excluding volatile food and energy sectors remained the same.
According to the Labor Bureau’s Consumer Price Index, overall consumer prices rose 2.3%, up 2.3% from the previous month’s 2.4% increase, a measure of average changes in goods and services costs. The so-called core rate of food and energy decline was unchanged at 2.8%, but that was the lowest in four years.
At 9:47am ET, the Blue Chip Dowin Index eased 0.37%, or 156.36 points, to 42,253.74. The Broad S&P 500 rose to 0.26% (14.91 points) to 5,859.10. And the Nasdaq, which includes high-tech, added 0.64% (119.13 points) to 18,827.47. The benchmark’s 10-year financial yield rose to 4.467%.
“We’re not ready to call it a turning point,” said Etoro Global Market Analyst Lale Akoner at Trading Platform. “Yes, the headline numbers have been cooled, mainly thanks to cheap oils and the biggest drop in grocery prices since 2020, but the details are not comfortable. The housing costs remained stubbornly high.”
Furthermore, the outlook for inflation from tariffs remains vague. In the coming months, “we will have a clear picture of whether tariffs will feed consumer prices, create alternative effects, and whether trade tensions will result in growth more than inflation,” Akoner said.
The Mix Open will appear from the heels of a strong rally on Monday after the US and China announced a 90-day suspension with mutual tariffs. The US, which is effective from Wednesday, will temporarily reduce China’s tariffs from 145% to 30%, while China will reduce US tariffs from 125% to 10%. The S&P 500 touched more than two months of height, and the Dow spiked over 1,100 points.
Corporate News
- Cryptocurrency Exchange Coinbase will be joining the S&P 500 and replacing Discover Financial in-retrieved. This change will take effect on May 19th before trading begins. This will be the first crypto company to participate in a wide range of market indexes. Stocks have skyrocketed over 15%.
- Hertz reported wide-anticipated quarterly losses and warned of cooling demand. The car rental company’s shares slipped through almost 18%.
- Electric taxi company Archer Aviation reported better results than expected than expected, with its inventory increasing by around 16%.
- Rigetti Computing’s sales for the first three months of the year did not reach estimates. The stock fell almost 11%.
- Shares in plane maker Boeing rose more than 2% after Bloomberg reported that China had lifted its ban on deliveries of Boeing aircraft.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
