• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

US markets close in red as inflation and trade truce vie with geopolitical tensions

by June 12, 2025
by June 12, 2025

The U.S. stock markets closed a volatile Wednesday session in the red as investors digested a fresh batch of inflation data, cautious news regarding a U.S.-China trade truce, and persistent concerns over escalating tensions in the Middle East impacting oil prices. 

The US markets took a breather as the indices snapped a 3-day winning streak.

The S&P 500 Index dipped by 0.39% to 6,015.48 points, while the Nasdaq Composite was down 037%, and the Dow Jones Industrial Average closed flat from yesterday.

Inflationary undercurrents and a muted CPI report

A key data point influencing market sentiment today was the release of the May 2025 Consumer Price Index (CPI). 

Inflation, as measured by the CPI, rose to 2.4% on a yearly basis, a slight increase from April’s 2.3% but coming in below the market’s expectation of 2.5%. 

The core CPI, excluding volatile food and energy prices, held steady at 2.8% in May, matching April’s increase. 

On a monthly basis, both CPI and core CPI increased by a modest 0.1%.

While the headline CPI figure was slightly below forecasts, suggesting that the full impact of new tariffs had not yet entirely permeated the U.S. economy, the underlying stickiness in certain components, particularly shelter costs, remains a Federal Reserve concern. 

This muted inflation data offers some breathing room for the Fed, which kept the federal funds rate unchanged at 4.25%-4.50% at its May meeting. 

However, the path forward for interest rate cuts remains a subject of intense debate, with expectations leaning towards patience from policymakers unless a significant downturn in the labor market emerges.

Cautious optimism on trade: the US-China truce

Adding another layer of complexity to the market narrative was the news of a tentative U.S.-China trade truce. 

Following two days of high-level talks in London, both nations reportedly reached a broad consensus on advancing a trade deal, building on earlier discussions. 

President Donald Trump announced via Truth Social that a deal was “done,” pending final approval, with tariffs on Chinese goods set to be reduced to 55% and China setting 10% tariffs.

Trump also added that China will be supplying rare earth minerals and magnets.

Despite the diplomatic breakthrough, the U.S. market’s reaction was notably subdued, with futures dipping earlier in the day. 

This cautious response likely stems from the ongoing pain felt by some Chinese exporters due to existing U.S. tariffs, which remain significantly higher than last year. 

While the agreement aims to roll back dueling export restrictions, the full economic impact and the certainty of long-term resolution are still being assessed by investors.

Oil prices surged after reports of increasing uncertainty in the Middle East. The US crude oil futures gained by 4% after a Reuters report said the US is preparing for a partial evacuation of the Iraq embassy. 

Warner Bros Discovery ended up as the top gainer in the S&P 500 with a near 5% gain.

Starbucks Corporation and Broadcom Inc. were among the top gainers with 4% and 3% jumps.

Intel Corp and United Airlines Holdings were among the top losers with a 6% and 5% decline. 

The post US markets close in red as inflation and trade truce vie with geopolitical tensions appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Asian markets open: Nikkei, Hang Seng fall on 55% US-China tariff shock; Sensex poised for weak start
next post
Morgan Stanley markets $5B financing for Musk’s xAI

Related Posts

Trump gives ’50-50 chance’ for EU trade deal...

July 27, 2025

Japan’s $550B investment could back Taiwan chip plants...

July 27, 2025

Musk hints at budget Model Y, but analysts...

July 27, 2025

From $824 to over $1,300: how soaring rents...

July 27, 2025

Top 3 catalysts for the VOO ETF stock...

July 27, 2025

Top catalysts for the Nikkei 225 Index this...

July 27, 2025

GO Residential REIT drops on debut after oversubscribed...

July 26, 2025

Meta to halt political ads in EU from...

July 26, 2025

Here’s why the Coursera stock price has surged...

July 26, 2025

What is Lip-Bu Tan doing for Intel stock...

July 26, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Trump gives ’50-50 chance’ for EU trade deal as leaders prepare for Sunday meeting

    July 27, 2025
  • Japan’s $550B investment could back Taiwan chip plants in US, says trade official

    July 27, 2025
  • Musk hints at budget Model Y, but analysts doubt its impact on Tesla’s sales downturn

    July 27, 2025
  • From $824 to over $1,300: how soaring rents are consuming American paychecks

    July 27, 2025
  • Top 3 catalysts for the VOO ETF stock this week

    July 27, 2025
  • Top catalysts for the Nikkei 225 Index this week

    July 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (1,969)
  • Editor's Pick (192)
  • Investing (185)
  • Stock (1,313)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

US markets today: Dow jumps as Disney...

May 8, 2025

EU proposes 2040 climate target with carbon...

July 2, 2025

Oil prices drop, heading for weekly loss...

May 23, 2025