Financial markets spent two days oscillating between gains and losses as investors awaited concrete results from U.S.–China trade negotiations held in London, the first formal talks since Washington’s 145% tariff on Chinese goods took effect in April. Hopes that the discussions might ease the dispute lifted global equities and pushed crude to its highest level in seven weeks before sentiment cooled. On Tuesday, optimism carried Wall Street higher. The Dow Jones Industrial Average gained about 105 points, while the S&P 500 and Nasdaq Composite edged closer to their record levels, buoyed in part by a rally in Tesla shares. Oil prices also advanced, underscoring expectations that an agreement could rekindle demand and reduce trade-related headwinds. The mood shifted on Wednesday after negotiators announced only a preliminary understanding that still requires review by President Donald Trump. Oil prices eased as traders assessed the limited detail, weak Chinese demand and rising OPEC+ output. U.S. equities followed suit: the S&P 500 slipped roughly 0.25%, the Nasdaq lost 0.5%, and the Dow finished little changed. Market participants are now looking for confirmation of any tariff rollbacks and a clearer timetable for implementing the accord. Until those details emerge, investors are likely to balance trade hopes against other risks, including renewed Middle East tensions and a lacklustre but still benign U.S. inflation backdrop.
Oil prices ease as market assesses Middle East tension https://t.co/iZMqoCdtMn https://t.co/iZMqoCdtMn
US stocks ended lower, with the Dow unchanged, the S&P 500 slipping a quarter of one percent, and the Nasdaq losing half of one percent. Wall Street erased modest gains as tensions flared in the Middle East https://t.co/uR1OqPuHF0 https://t.co/4OLXZEaxaU
The S&P 500 ended lower on Wednesday, with investors spooked by Middle East tensions, while a tame inflation report calmed concerns around tariff-driven price pressures and traders awaited more details on China-U.S. trade talks. https://t.co/Y39NbhTLa1