Markets Hold Gains on U.S.-China Trade Progress; I…

From Financial Modeling Prep: 2025-06-11 07:22:00

Stock markets and the dollar rose cautiously as U.S.-China trade talks yielded optimistic headlines. Negotiators reached a broad trade framework, resolving restrictions on rare earth exports. Details remain vague, with final approval pending from Trump and Xi Jinping. Markets are wary of the deal’s structural impact.

A federal appeals court upheld Trump’s tariffs despite earlier attempts to block them. Small businesses sued over the emergency declaration’s alleged damage. The ruling sustains one of Trump’s key economic policies, sparking questions about its long-term effects.

Investors await U.S. CPI data to gauge tariff impact on consumer prices. Signs of import-led inflation and Fed policy implications are key. The upcoming Treasury auction will provide demand signals amid trade optimism and inflation hedging supporting the dollar.

Investors seek concrete steps from the trade framework and await inflation data to assess tariff risks. Clarity on the Fed’s path is crucial before taking on more risk-heavy positions. Most asset classes may remain in a holding pattern until more definitive market signals emerge.



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