Stocks dip despite Trump's notice of ‘DONE' deal with China and better-than-expected inflation data
The S&P 500 posted a 0.27% decline on Wednesday as investors weighed Trump's scant-on-details trade deal with China as well as an inflation report that outperformed analysts' expectations.
The stock markets dropped on Wednesday despite a seemingly positive development in the trade war between the U.S. and China alongside a better-than-expected inflation report for May. The S&P 500 dipped 0.27%, the Nasdaq fell 0.50%, and the Dow Jones closed the day essentially flat.
'OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME,' President Donald Trump posted Wednesday morning on his social media platform, Truth Social, referring to President Xi Jinping of China.
Trump gave few specifics but said that China would continue to export magnets and rare earth materials to the U.S. and only implement a 10% tariff on American goods. The U.S., in turn, would enforce a 55% tariff on exports from the People's Republic of China to the U.S. and let Chinese students continue to attend American colleges and universities.
The U.S. and China had previously levied tariffs as high as 145% and 125% on each other, respectively. Trump's administration had also signaled it would start to cancel student visas for Chinese students in a move that a Chinese foreign minister called 'discriminatory.'
It remains unclear when the trade deal between the two superpowers goes into effect or whether the U.S. offered China any more concessions. Xinhua, a Chinese state news agency, said the U.S. and China had 'candid and in-depth talks' in its evaluation of the agreement.
Meanwhile, the Bureau of Labor Statistics released its consumer price index report for May. The U.S. agency noted that inflation had only crept up by 0.1% from April to 2.4%. That was slightly less than the median estimate of 2.5% from economists polled by FactSet.
Analysts had worried that Trump's aggressive set of tariffs would increase prices for American consumers. Still, some warn that the full effect of the White House's trade war hasn't percolated throughout the economy. 'It's encouraging to see inflation moderate further, and yet we are aware of the possibility of some tariff-related lift in prices coming in the back half of the year,' wrote Rick Rieder, chief investment officer of global fixed income at BlackRock.
Wednesday's market dip followed a week of gains. In June, the S&P 500 neared the all-time highs it posted in February, which was shortly after the 47th president's inauguration.
This story was originally featured on Fortune.com
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Moelis & Company LLC is acting as the exclusive placement agent in connection with this offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Archer, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. A prospectus supplement relating to the shares of Class A common stock will be filed by Archer with the SEC. About Archer Archer is designing and developing the key enabling technologies and aircraft necessary to power the future of aviation. To learn more, visit Forward-Looking Statements This press release contains forward-looking statements regarding Archer's future business plans and expectations, including the satisfaction of customary closing conditions related to the offering, Archer's expected use of proceeds, success of its certification and commercialization efforts in the U.S. and abroad, the effects of the executive order described above, and implementation of the eVTOL Integration Pilot Program. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our filings with the SEC, including our most recent Annual Report on Form 10-K, most recent Quarterly Report on Form 10-Q and Form 8-K filed on June 13, 2025, which are or will be available on our investor relations website at and on the SEC website at In addition, please note that any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this press release. We undertake no obligation to update these statements as a result of new information or future events. Source: Archer Aviation Text: ArcherIR 1 Industry comparison is based on publicly available information as of June 12, 2025. Archer's pro forma liquidity position consists of: (i) its cash and cash equivalents on its balance sheet as of March 31, 2025; (ii) the additional gross proceeds it expects to receive at closing from today's financing; and (iii) the remaining amount available under its current at-the-market program. This estimate does not include up to ~$400M of additional capital from Stellantis to help scale Archer's manufacturing of its Midnight aircraft, which remains subject to entering into further definitive agreement(s) relating thereto.
