US stock market today: US-China tariff truce fails to calm Wall Street; Dow, S&P 500, Nasdaq edge lower ahead of opening session
US Stock Market:
Wall Street futures slipped on Wednesday morning, even as the United States and China reached a broad consensus on advancing a trade deal after months of tit-for-tat tariffs.
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The agreement followed two days of high-level talks in London, building on earlier discussions in Geneva.
Despite the positive steps in diplomacy, US market showed a muted reaction. Dow futures fell by 110 points, while S&P 500 futures dipped slightly below the flat line, and Nasdaq futures dropped 60 points.
However on Tuesday, the major US indexes inched closer to record highs as talks between the world's two largest economies carried into a second day.
S&P 500 rose 0.5% to 6,038.81, the Dow Jones Industrial Average gained 0.2% to 42,866.87, and the Nasdaq composite climbed 0.6% to 19,714.99, as investors kept a close eye on the ongoing US-China negotiations.
Share prices had significantly recovered since falling approximately 20% below their record two months ago, following Donald Trump's unexpected announcement of severe tariffs that sparked recession concerns.
The market's upward trajectory was largely driven by expectations that Trump would reduce tariffs after securing trade agreements globally, bringing the S&P 500 within 1.7% of its February record.
"The talks with China were going 'really, really well,'" US secretary of commerce Howard Lutnick stated Tuesday evening in London, where negotiations were taking place.
Both nations have suspended many of their announced tariffs during ongoing discussions.
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The late Tuesday agreement boosted Asian markets, with Hong Kong and Shanghai leading the gains, alongside positive performance in Tokyo, Sydney, Seoul, Wellington, Taipei and Manila.
The US benchmark indices moved closer to their record highs on Tuesday, with the S&P 500 and Nasdaq outperforming, boosted by a third straight day of gains in Tesla, which has nearly erased its losses from June 4 and 5.
Tesla shares jumped 5.7% to $326.09, climbing back above after last week's slump, which was partly triggered by tensions between Elon Musk and Donald Trump.
Investor sentiment was further lifted after Musk announced that Tesla's long-awaited robotaxi service is "tentatively" set to launch in Austin on June 22.
Meanwhile, J M Smucker saw its stock plunge 15.6% despite beating earnings estimates. Investors reacted to weaker-than-expected revenue and a disappointing profit outlook for the year ahead.
On Tuesday, the World Bank lowered its global growth forecast for 2025 to 2.3%, down from 2.7% projected in January, citing ongoing trade tensions and economic uncertainty. It also cut the US growth forecast for 2025 to 1.4%, down sharply from the 2.8% growth expected in 2024.
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