US stocks rose modestly on Tuesday as investors remained cautiously optimistic about the progress of US-China trade talks, which entered their second day. The Dow Jones Industrial Average gained 0.25%, while the S&P 500 and Nasdaq Composite added around 0.6%. Companies such as Tesla and Alphabet reported positive gains, but Microsoft slipped 0.4%.
The World Bank slashed its global growth forecast for 2025 by 0.4 percentage points to 2.3%, citing higher tariffs and increased uncertainty as a headwind for nearly all economies.
Meanwhile, the dollar steadied against major currencies after holding steady during earlier trading hours. Oil prices held near a seven-week high as market participants awaited updates from US-China trade talks.
The Federal Reserve is expected to leave interest rates unchanged at its upcoming meeting, with only 44 basis points of easing priced in by December. Data on US consumer inflation for May and producer price index report will also be scrutinized for signs of lingering inflationary pressures.
As tensions between the world’s two largest economies may ease, investors are awaiting more details from the trade talks, which could provide relief to markets. The progress of these negotiations has been closely watched by investors, who have previously been impacted by shifting tariffs and uncertain Sino-US ties.
The World Bank’s reduced global growth forecast highlights the ongoing challenges posed by higher tariffs and increased uncertainty, but also provides a reason for caution that markets may be taking a “glass half-full” view of the outlook.
Source: https://www.reuters.com/world/china/global-markets-wrapup-1-2025-06-10