Stock Market Today: Dow Futures Rise on Trade Truce Optimism — Live Updates
Hopes for more tariffs deals boosted global markets early Friday, following reports the U.S. and China had signed a deal to restore their trade truce.
The two countries finalized an understanding, and the White House has imminent plans to reach agreements with 10 other trading partners, Bloomberg News said, citing an interview with Commerce Secretary Lutnick. 'They're going to deliver rare earths to us,' he said.
China's commerce ministry said the country will approve exports of 'controlled items' to the U.S., when questioned about the critical materials. Exports of rare earths, which are essential for EV motors, been a sticking point in negotiations.
Futures tied to the three main U.S. indexes all rose. The S&P 500 and Nasdaq Composite are just off all-time highs.
The U.S. dollar was little changed, after weakening Thursday.
Treasury yields edged higher, having settled Thursday at around 4.25%.
Recap on Thursday's market moves, or listen to our podcast.
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The Hill
14 minutes ago
- The Hill
White House announces trade deal with China on rare earth exports
The Trump administration reached an agreement with China this week focused on rare earth exports to the U.S., building on previous talks between the two nations that eased tariffs on imports from Beijing. 'We had trade talks in Geneva towards moving toward the agreement in London. Part of the agreement was tariffs coming down and rare earth, rare earth magnets starting to flow back to the U.S.— they formed the core of our industrial base. They were not flowing as fast as previously agreed,' Treasury Secretary Scott Bessent said on Friday on Fox Business 'Mornings With Maria.' The agreement was then signed earlier this week, which the administration is describing as a de-escalation of the U.S.-China trade war. 'I am confident now that we, as agreed, the magnets will flow. In the meantime, we had put countermeasures versus the Chinese in place. We had held back some, the vital supplies for them. So, what we're seeing here is a de-escalation under President Trump's leadership,' Bessent said. Trump at a White House event on Thursday alluded to a new agreement, not mentioning rare earths but saying, 'We just signed with China the other day.' Commerce Secretary Howard Lutnick later told Bloomberg TV that the deal, which was struck in London, was signed earlier this week. 'The China deal, we inked the deal — you remember, we had a trip to Geneva and then that was being slow-played. We got back together in London and that deal was signed and sealed two days ago,' Lutnick said. Lutnick also told Bloomberg that China will 'deliver rare earths to us' and that afterwards the U.S. will 'take down our countermeasures.' The administration and China agreed to an additional understanding for a framework to implement the Geneva agreement. It's about export controls, a White House official told The Hill. Top U.S. and Chinese officials met in London earlier this month to finalize the trade truce, after Trump and Chinese President Xi Jinping spoke on the phone the week prior. The U.S. and China were negotiating a trade agreement since Trump imposed hefty reciprocal tariffs in April — including 145 percent on China — brokered a temporary pause in the tariff hikes during a May meeting in Geneva. China's Ministry of Commerce spokesperson said in a statement the U.S. and China agreed on 'further details of the framework' that was negotiated in the London and Geneva talks. 'China will, in accordance with the law, review and approve eligible export applications for controlled items. In turn, the United States will lift a series of restrictive measures it had imposed on China,' the spokesperson said. The spokesperson added that since the London meeting, U.S. and Chinese officials have 'maintained close communication' to reach this point. China is a major minerals hub, both in terms of mining and processing. Sixty percent of rare earth elements come from China. Rare earth elements refers to a specific group of materials that are only deposited in relatively small quantities and can be used in a variety of applications including electronics, health care and batteries. Trump has long sought assistance from other countries on mineral supplies, including rare earths. In particular, he sought to condition military assistance to Ukraine on whether the country was willing to supply the U.S. with minerals and in March announced a deal related to rare earths.
Bloomberg
19 minutes ago
- Bloomberg
Start to See Tariff Effects in Q4: Adams
Marissa Adams, HSBC Europe and Americas Regional Head of Global Trade Solutions, speaks to Bloomberg's Jonathan Ferro, Lisa Abramowicz and Annmarie Hordern about the US-China trade framework and how tariffs are impacting corporates on 'Bloomberg Surveillance.' (Source: Bloomberg)
CBS News
39 minutes ago
- CBS News
PCE report today shows U.S. inflation ticked higher in May as consumers pared spending
Fed Chair testifies that tariffs could drive up inflation, which is why rates were held steady The personal consumption expenditures price index, or the PCE, inched higher in May, the latest sign that inflation remains stubbornly above the Federal Reserve's 2% annual target. Prices rose 2.3% in May compared with a year ago, up from just 2.1% in April, according to the PCE data. Excluding the volatile food and energy categories, core prices rose 2.7% from a year earlier, up from a rate of 2.5% the previous month. While inflation ticked higher, prices across the U.S. haven't yet shown a major impact from the Trump administration's tariffs. Federal Reserve Chair Jerome Powell cautioned earlier this week that inflation could reignite this summer as the import duties are passed through to consumers. Consumers also pared their spending last month, marking their first reduction since January, while incomes also dropped, the Commerce Department said on Friday. The pullback in spending, which dropped 0.1% last month, comes after Americans opened their wallets earlier in the year to buy goods before the tariffs took effect, economists said. "While the spending numbers fell slightly and came in below expectations, we would not read too much into these numbers as this weakness is probably primarily just payback from the jump in spending earlier this year as consumers tried to buy goods ahead of the tariffs," Greg Wilensky, head of U.S. fixed income and portfolio manager at Janus Henderson, said in an email. Incomes dropped after a one-time adjustment to Social Security benefits had boosted payments in March and April. Social Security payments were raised for some retirees who had worked for state and local governments due to the Social Security Fairness Act. Modest impact from tariffs The inflation figures suggest that President Trump's broad-based tariffs are still having only a modest effect on prices. The cost of some goods, such as toys and sporting goods, have risen, but those increases have been partly offset by falling prices for new cars, airline fares and apartment rentals, among other items. On a monthly basis, in fact, inflation was mostly tame. Prices rose just 0.1% in May from April, according to the Commerce Department, the same as the previous month. Core prices climbed 0.2% in May, more than economists expected and above last month's 0.1%. Economists point to several reasons why Trump's tariffs have yet to accelerate the pace of inflation, as many analysts had expected. Like American consumers, companies imported billions of dollars of goods in the spring before the duties kicked in, and many items currently on store shelves were imported without paying higher levies. Some businesses are also absorbing higher import costs, cushioning consumers from price hikes. contributed to this report.
