Wall Street opens mixed as US-China trade talks begin
Top officials from both countries have kicked off discussions at London's Lancaster House, looking to address disagreements around a preliminary trade agreement struck last month that had briefly cooled tensions between the world's largest economies.
The meeting, which could run into Tuesday, comes four days after US President Donald Trump and Chinese leader Xi Jinping spoke by phone, their first direct interaction since Trump's January 20 inauguration.
The leaders had, however, left key issues unresolved.
"The talks will have to go on for some time before we decide whether or not there's actual progress being made. However, most investors remain hopeful that there will be some positive results," said Peter Andersen, founder at Andersen Capital Management.
White House economic adviser Kevin Hassett told CNBC in an interview on Monday the US trade negotiators are seeking a handshake in London to seal an agreement struck by Trump and Xi to allow the export of China's rare earth minerals and magnets to the United States.
Hopes of more trade deals between the US and its major trading partners, along with upbeat earnings and tame inflation data, helped US equities rally in May, with the S&P 500 and the tech-heavy Nasdaq notching their best monthly gains since November 2023.
The S&P 500 remains a little more than 2.0 per cent below all-time highs touched in February while the Nasdaq is about 3.0 per cent below its record peaks reached in December.
Major data releases this week include readings on May consumer prices and initial jobless claims.
While investors widely expect the Federal Reserve to keep interest rates unchanged next week, focus will be on any signs of pick-up in inflation as Trump's tariffs risk raising price pressures.
In early trading on Monday, the Dow Jones Industrial Average fell 129.75 points, or 0.30 per cent, to 42,633.12, the S&P 500 lost 0.32 points, or 0.01 per cent, to 6,000.04 and the Nasdaq Composite gained 44.81 points, or 0.23 per cent, to 19,574.76.
Seven of the 11 major S&P 500 sub-sectors fell, with healthcare stocks, down 0.6 per cent, declining the most.
On the flip side, information technology stocks advanced 0.6 per cent.
Most megacap and growth stocks were mixed.
Tesla shares edged 0.5 per cent lower after brokerage Baird downgraded the stock to "neutral".
Nvidia gained 1.3 per cent.
Warner Bros Discovery shares jumped 9.5 per cent, the most on the S&P 500, after the company said it would separate its studios and streaming business from its fading cable television networks.
Robinhood Markets fell 7.4 per cent after S&P Dow Jones Indices left S&P 500 constituents unchanged in its latest rebalancing, following recent speculation that the online brokerage would be added to the benchmark index.
Merck rose 1.1 per cent after the drug maker's oral cholesterol pill succeeded in two late-stage studies.
Advancing issues outnumbered decliners by a 1.65-to-1 ratio on the NYSE and by a 1.44-to-1 ratio on the Nasdaq.
The S&P 500 posted 10 new 52-week highs and one new low while the Nasdaq Composite recorded 63 new highs and 27 new lows.
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The Advertiser
an hour ago
- The Advertiser
Honda Australia not worried about Chinese competition
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"So we're very comfortable we've got the ingredients to be successful in this market – but they're competitors, whatever and wherever they come from – that's just the environment we have to work in." The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too. It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms. Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz. The number of brands in Australia has continue to increase, making our market – already saturated given the number of brands competing for sales of only 1.2 million vehicles each year – even more cut-throat. It led chief operating officer of Chery-owned Omoda Jaecoo, Roy Muñoz, to recently declare more brands benefited new-car buyers and only improved showroom offerings through an ultra-competitive climate. MORE: Honda Australia's first EV to launch in 2026, but what will it be? MORE: Australia doesn't have too many car brands, says one of its newest arrivals Content originally sourced from: Honda Australiasays it has what it takes to compete with the growing number of Chinese brands in our market, as it looks to rebuild after several tough sales years. While Honda is pitched – and priced – as a more premium brand than many Japanese rivals, it's facing increased competition from new brands from China. 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"I think of it from the quality of the product that you see, the quality of the customer care and service you receive, the longevity of the models and the relationship we have with you during the ownership period," he explained. "So we're very comfortable we've got the ingredients to be successful in this market – but they're competitors, whatever and wherever they come from – that's just the environment we have to work in." The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too. It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms. Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz. 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AU Financial Review
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Perth Now
12 hours ago
- Perth Now
Dow briefly hits record high on UnitedHealth's gains
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