US stocks drift and Chinese markets rise as trade talks start between
the world's largest economies
[June 10, 2025] By
STAN CHOE
NEW YORK (AP) — U.S. stocks drifted through a quiet Monday as the
world’s two largest economies began talks on trade that could help avoid
a recession.
The S&P 500 edged up by 0.1% and is within 2.3% of its record, which was
set in February. The Dow Jones Industrial Average slipped by 1 point,
which is well below 0.1%, and the Nasdaq composite added 0.3%.
Officials from the United States and China met in London to talk about a
range of different disputes that are separating them. The hope is that
they can eventually reach a deal that will lower each’s punishing level
of tariffs against the other, which are currently on pause, so that the
flow of everything from tiny tech gadgets to enormous machinery can
continue.
Hopes that President Donald Trump will lower his tariffs after reaching
such trade deals with countries around the world have been among the
main reasons the S&P 500 has rallied so furiously since dropping roughly
20% from its record two months ago. It’s back above where it was when
Trump shocked financial markets in April with his wide-ranging tariff
announcement on what he called “Liberation Day.”
This may be the shortest sell-off following a shock of heightened
volatility on record, according to Parag Thatte, Binky Chadha and other
strategists at Deutsche Bank. Typically, stocks take around two months
to bottom following a spike in volatility and then another four to five
months to recover their losses. This time around, stocks have basically
made a round trip in less than two months.
But nothing is assured, of course, and that helped keep trading
relatively quiet on Wall Street Monday.
Some of the market’s biggest moves came from the announcement of big
buyout deals. Qualcomm rallied 4.1% after saying it agreed to buy
Alphawave Semi in a deal valued at $2.4 billion. IonQ, meanwhile, rose
2.7% after the quantum computing and networking company said it agreed
to purchase Oxford Ionics for nearly $1.08 billion.
On the losing side of Wall Street was Warner Bros. Discovery, which
flipped from a big early gain to a loss of 3% after saying it would
split into two companies. One will get Warner Bros. Television, HBO Max
and other studio brands, while the other will hold onto CNN, TNT Sports
and other entertainment, sports and news television brands around the
world, along with some digital products.
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Joseph Armes, Chairman, President & CEO of CSW Industrials, gavels
trading closed at the New York Stock Exchange, Monday, June 9, 2025.
(AP Photo/Richard Drew)
 Tesla recovered some of its sharp,
recent drop. The electric vehicle company tumbled last week as Elon
Musk’s relationship with Trump broke apart, and it rose 4.6% Monday
after flipping between gains and losses earlier in the day.
The frayed relationship could end up damaging Musk’s other companies
that get contracts from the U.S. government, such as SpaceX. Rocket
Lab, a space company that could pick up business at SpaceX’s
expense, rose 2.5%.
All told, the S&P 500 rose 5.52 points to 6,005.88. The Dow Jones
Industrial Average slipped 1.11 to 42,761.76, and the Nasdaq
composite rose 61.28 to 19,591.24.
In stock markets abroad, indexes were modestly lower in Europe after
rising across much of Asia.
Chinese markets climbed even though the government reported that
exports slowed in May, growing 4.8% from a year earlier after
jumping more than 8% in April. China also reported that consumer
prices fell 0.1% in May from a year earlier, marking the fourth
consecutive month of deflation.
Stocks rallied 1.6% in Hong Kong and rose 0.4% in Shanghai.
In the bond market, the yield on the 10-year Treasury eased to 4.48%
from 4.51% late Friday. It fell after a survey by the Federal
Reserve Bank of New York found that consumers’ expectations for
coming inflation eased a bit in May.
That provides some relief for the Fed, which has been keeping its
main interest rate steady as it waits to see how much Trump’s
tariffs will raise inflation and how much they will hurt the
economy. A persistent increase in expectations for inflation among
U.S. households could drive behavior that creates a vicious cycle
that only worsens inflation.
Economists expect a report coming on Wednesday to show inflation
across the country accelerated last month to 2.5% from 2.3%.
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AP Writer Jiang Junzhe contributed.
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