US stocks advance on hopes of China trade deal
Traders working on the floor of the New York Stock Exchange on June 2, in New York City. PHOTO: AFP
US stocks advance on hopes of China trade deal
NEW YORK - Wall Street stocks bounced on June 3 as investors hoped for upcoming trade deals to cool tensions from US President Donald Trump's punishing global tariffs.
The Dow Jones Industrial Average closed 0.5 per cent higher at 42,519.64, while the broad-based S&P 500 gained 0.6 per cent to 5,970.37.
The tech-heavy Nasdaq Composite Index rallied 0.8 per cent to 19,398.96.
In particular, Nvidia shares gained 2.8 per cent, helping with the overall advance.
'The fact that we're not down to me suggests that the market expects a trade deal to happen,' said Mr Adam Sarhan, of 50 Park Investments. 'It's a matter of when, not if at this point.'
He was referring to hopes of a potential deal between Washington and Beijing, although negotiations appeared deadlocked for now.
The world's two biggest economies agreed in May to de-escalate staggeringly high tariffs on each other's products, before Mr Trump last week accused China of violating their pact.
The White House said on June 2 that Trump and his Chinese counterpart Xi Jinping would likely hold a long-awaited call later this week.
The June 3 strong gains came despite the Organisation for Economic Co-operation and Development's (OECD) cut to global growth forecasts, warning that Mr Trump's tariffs would stifle the world economy.
After 3.3 per cent growth in 2024, the global economy is now expected to expand by 2.9 per cent in 2025 and 2026.
The OECD also expects the US economy to expand by 1.6 per cent this year, down from an expected 2.2 per cent previously. AFP
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
21 minutes ago
- CNA
Trump, Germany's Merz begin talks on Ukraine and trade in cordial White House meeting
WASHINGTON: US President Donald Trump and German Chancellor Friedrich Merz opened their first White House meeting on Thursday (Jun 5) with discussions on Ukraine, trade and defence spending, setting a more cordial tone than Trump's recent Oval Office sessions with other foreign leaders. Trump praised Merz as a "good representative of Germany" and "difficult," which he suggested was a compliment. He said US troops would remain in Germany and welcomed Berlin's increased defence spending. Merz expressed readiness for a deeper relationship with Washington. The two conservatives appeared to get along well, trading pleasantries about accommodations and exchanging thanks during their brief press remarks. TRADE AND TARIFFS LOOM OVER DIPLOMACY Despite the friendly atmosphere, unresolved tensions on trade lingered. The US and European Union are negotiating a broader trade agreement crucial to Germany's export-driven economy. Trump, however, signalled flexibility on whether a deal materialises. "We'll end up hopefully with a trade deal. I'm okay with the tariffs or we make a deal," Trump said. Merz, who assumed office last month, had said ahead of the meeting that he expected no major breakthroughs but intended to raise issues such as Russia's invasion of Ukraine, US tariffs and NATO coordination. Germany remains Ukraine's second-largest donor behind the US. Trump has continued to push NATO allies to boost defence budgets. He hinted, however, that Berlin should not go overboard given its 20th-century history. Merz, for his part, supports increasing Germany's defence outlays to 5 per cent of GDP. SECURITY STAKES AND POLITICAL CONTRASTS The meeting comes amid broader strains between the US and Europe, fuelled by Trump's interventions in European domestic affairs and support for right-wing movements. Trump has also challenged European stances on immigration and digital speech regulation. Merz's team reportedly sought guidance from other leaders on managing meetings with Trump to avoid public clashes. The summit precedes a major NATO gathering, where alliance unity and burden sharing will again be tested. Security concerns remain top of mind for Berlin, which has depended on US nuclear deterrence since World War Two. Trump's past threats to withhold protection from countries not meeting defence targets have unsettled European capitals. Still, Merz has moved swiftly on foreign policy. He led a European delegation to Kyiv shortly after taking office and drew praise from US Defence Secretary Pete Hegseth for backing the proposed 5 per cent NATO spending target. Sudha David-Wilp of the German Marshall Fund said Merz's actions show "Germany is willing to accept greater responsibility for Ukraine and the European security order" — long-standing US priorities. Both leaders share business backgrounds, right-leaning politics, a hardline stance on immigration, and an interest in golf. However, Merz has also criticised Trump. Before his own election win in February, Merz described Trump campaign rhetoric as "ultimately outrageous," likening it to Russian interference.
Straits Times
44 minutes ago
- Straits Times
Trump administration ending protected status for Nepalese migrants
FILE PHOTO: U.S. Homeland Security Secretary Kristi Noem speaks at the Conservative Political Action Conference, CPAC, in Jasionka, Poland, May 27, 2025. Alex Brandon/Pool via REUTERS/File Photo The Trump administration has moved to end deportation protections the United States granted to thousands of Nepalese people after a 2015 earthquake devastated the country, according to a government notice posted on Thursday. Homeland Security Secretary Kristi Noem said in the notice that the administration is terminating temporary protected status for Nepal after a review found the country has largely recovered from the disaster. "There are notable improvements in environmental disaster preparedness and response capacity, as well as substantial reconstruction from the earthquake's destruction such that there is no longer a disruption of living conditions and Nepal is able to handle adequately the return of its nationals," the notice said. The department estimates there are around 12,700 Nepalese with the status, which provides deportation relief and work permits to people already in the U.S. if their home countries experience a natural disaster, armed conflict or other extraordinary event. Of those, approximately 5,500 have lawful permanent residence in the U.S. The notice said the revocation will take effect 60 days from Friday, giving the approximately 7,000 Nepalese migrants with temporary protected status who aren't permanent residents until August 5, 2025, to leave the country or change their immigration status. After that date, they could face deportation. The Department of Homeland Security and the Nepalese embassy in Washington did not immediately respond to requests for comment. Donald Trump, who returned to the presidency in January, has pledged to deport record numbers of migrants in the United States illegally and has moved to strip certain migrants of temporary legal protections, expanding the pool of possible deportees. During his first term from 2017 to 2021, Trump's administration tried to end most enrollment in the temporary protected status program, but was stymied by federal courts. Last month, the U.S. Supreme Court let the Trump administration end temporary protected status that was granted to hundreds of thousands of Venezuelans in the U.S. by his predecessor Joe Biden. Trump has also sought to end the status for Haitians, Afghans and others. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
Trump ‘very disappointed' by Musk criticism of his mega-Bill as an abomination
Visiting German Chancellor Friedrich Merz (left) sat in silence as US President Donald Trump unloaded in the Oval Office on former adviser Elon Musk. PHOTO: REUTERS Trump 'very disappointed' by Musk criticism of his mega-Bill as an abomination WASHINGTON - US President Donald Trump said on June 5 he was 'very disappointed' by Elon Musk's criticism of his policy mega-Bill, adding he didn't know if his friendship with his billionaire former adviser would survive. In an extraordinary rant in the Oval Office as visiting German Chancellor Friedrich Merz sat mutely beside him, Mr Trump unloaded on SpaceX and Tesla boss Mr Musk in his first comments on the issue. 'Look, Elon and I had a great relationship. I don't know if we will anymore. I was surprised,' Mr Trump told reporters in the Oval Office after former adviser Mr Musk slammed the Bill as an 'abomination'. 'I'm very disappointed, because Elon knew the inner workings of this Bill better than almost anybody sitting here... All of a sudden, he had a problem,' Mr Trump added. Mr Musk hit back minutes later on his X social network, saying the 78-year-old president's claims he had advance sight of the Bill were 'false.' 'Whatever,' he added above a video of Mr Trump saying Mr Musk was upset about the loss of subsidies for electric vehicles. The latest clash comes less than a week since Mr Trump held a grand Oval Office farewell for Mr Musk as he wrapped up his time leading the cost-cutting Department of Government Efficiency (Doge). Mr Musk stunned reporters at the time by turning up with a black eye that he said was caused by his son. 'You saw a man who was very happy when he stood behind the Oval desk, and even with the black eye. I said, you want a little makeup? We'll get you a little makeup,' Mr Trump said. 'But he said, 'No, I don't think so,' which is interesting and very nice. He wants to be who he is.' Mr Trump said he could understand why Mr Musk was upset with some steps he had taken, including withdrawing a nominee to lead the Nasa space agency whom the tech tycoon had backed. The US president's 'big, beautiful Bill' on tax and spending – the centrepiece of his domestic agenda – could define his second term and make or break Republican prospects in the 2026 midterm elections. Mr Musk, however, called it a 'disgusting abomination' on June 3. A day later, the magnate called for Republicans to 'kill the Bill,' and for an alternative plan that 'doesn't massively grow the deficit.' AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
