US stocks drift closer to their record as Wall Street waits to see what
US-China talks will bear
[June 11, 2025] By
STAN CHOE
NEW YORK (AP) — U.S. stocks drifted closer to their all-time high on
Tuesday as the wait continued to hear what will come of trade talks
between the United States and China.
The S&P 500 rose 0.5% as talks between the world’s two largest economies
carried into a second day. The Dow Jones Industrial Average added 105
points, or 0.2%, and the Nasdaq composite gained 0.6%.
Stocks have roared higher since dropping roughly 20% below their record
two months ago, when President Donald Trump shocked financial markets
with his announcement of tariffs that were so stiff that they raised
worries about a possible recession. Much of the rally has been due to
hopes that Trump would lower his tariffs after reaching trade deals with
countries around the world, and the S&P 500 is back within 1.7% of its
record set in February.
It’s getting to be time to see whether such hopes were warranted. The
talks with China were going “really, really well,” U.S. Secretary of
Commerce Howard Lutnick said Tuesday evening in London, where the talks
were being held. The two sides worked on “all sorts of trade issues,” he
said, according to a video clip posted by the Chinese state broadcaster
CGTN.
Both the United States and China have put many of their tariffs
announced against each other on pause as talks continue.
Even though many tariffs are on hold for the moment, they’re still
affecting companies and their ability to make profits because of all the
uncertainty they’ve created.
Designer Brands, the company behind the DSW shoe store chain, became the
latest U.S. company to yank its financial forecasts for 2025 because of
“uncertainty stemming primarily from global trade policies.”
The company, which also owns the Keds, Jessica Simpson and other shoe
brands, reported a larger loss for the start of the year than analysts
were expecting, and its revenue also fell short of forecasts. CEO Doug
Howe pointed to ”persistent instability and pressure on consumer
discretionary” spending, and the company’s stock tumbled 18.2%.
The uncertainty is moving in both directions, to be sure. A survey
released Tuesday of optimism among small U.S. businesses improved a bit
in May.
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A trader watches his monitors as he works on the floor of the New
York Stock Exchange, Tuesday, June 10, 2025. (AP Photo/Richard Drew)
 “While the economy will continue to
stumble along until the major sources of uncertainty are resolved,
owners reported more positive expectations on business conditions
and sales growth,” according to Bill Dunkelberg, chief economist at
the National Federation of Independent Business.
On Wall Street, J.M. Smucker fell 15.6% even though its results for
the latest quarter topped analysts’ expectations. Its revenue fell
short of expectations, as did its forecast for profit in the
upcoming year.
Tesla helped to make up for such losses after rising 5.7%. The
electric vehicle company has been recovering since tumbling last
week as Elon Musk’s relationship with Trump imploded. That raised
fear about possible retaliation by the U.S. government against
Tesla.
Shares that trade in the United States of chipmaking giant Taiwan
Semiconductor Manufacturing Co. rose 2.6% after the company known as
TSMC said its revenue in May jumped nearly 40% from the year
earlier.
Casey’s General Stores leaped 11.6% after the chain of convenience
stores based in Ankeny, Iowa, reported a stronger profit for the
latest quarter than analysts expected. It credited strength in sales
of hot sandwiches and other items.
All told, the S&P 500 rose 32.93 points to 6,038.81. The Dow Jones
Industrial Average added 105.11 to 42,866.87, and the Nasdaq
composite climbed 123.75 to 19,714.99.
In stock markets abroad, indexes were mixed amid mostly modest
movements across Europe and Asia. A 0.8% drop for Germany’s DAX and
a 0.6% gain for South Korea’s Kospi were two of the bigger moves.
In the bond market, the yield on the 10-year Treasury eased to 4.47%
from 4.49% late Monday.
___
AP Writers Matt Ott, Elaine Kurtenbach and Didi Tang contributed.
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