Wall Street Closes Higher as Markets Monitor U.S.–China Trade Talks
Among the major S&P 500 sectors, only industrials closed in the red. Energy, healthcare, and communication services led the session's gains.
Quick overview
- All three major U.S. stock indexes closed higher on Tuesday, with the Dow Jones up 0.25%, the S&P 500 rising 0.55%, and the Nasdaq gaining 0.63%.
- Investors are monitoring ongoing trade negotiations between the U.S. and China, with discussions described as going well by U.S. Commerce Secretary Howard Lutnick.
- Key inflation data is expected to be released on Wednesday, which could influence market reactions depending on whether the Consumer Price Index exceeds 2.5%.
- In sector performance, energy, healthcare, and communication services saw gains, while Nike, Walt Disney, and Merck & Co. were standout performers in the Dow.
All three major U.S. stock indexes finished in positive territory on Tuesday, as investors closely watched trade negotiations between China and the United States and awaited key inflation data.
The Dow Jones Industrial Average, which tracks 30 blue-chip companies, rose 0.25% to 42,866.87 points. The S&P 500, representing the largest publicly traded companies, climbed 0.55% to 6,038.81, while the tech-heavy Nasdaq Composite gained 0.63% to close at 19,714.99.U.S. and Chinese officials are holding talks in London to improve trade relations between the world’s two largest economies.
U.S. Commerce Secretary Howard Lutnick said the discussions were “going well” and may conclude later tonight.Investors are also bracing for new U.S. inflation data set to be released on Wednesday.
Analysts expect the report to reflect the impact of former President Donald Trump’s tariffs and provide clues about the Federal Reserve’s next moves.If the annual Consumer Price Index (CPI) prints at 2.5% or higher—above market expectations—it could trigger a decline in equities and increased demand for bonds, on concerns that interest rates will remain elevated for longer.
Sector Performance and Standout Stocks
Among the major S&P 500 sectors, only industrials closed in the red. Energy, healthcare, and communication services led the session’s gains.Within the Dow Jones index, shares of Nike jumped 3.17%, followed by Walt Disney (+2.65%) and Merck & Co. (+2.60%).
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