CNBC TechCheck Evening Edition: June 9, 2025
CNBC's TechCheck brings you the latest in tech news from CNBC's 1 Market in the heart of San Francisco.
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CNBC
2 hours ago
- CNBC
CNBC Daily Open: There's progress on trade and U.S. inflation — but it's harder to rely on such news
Consumer prices in the U.S. have been benign since February, and the May reading continues that trend, according to the Bureau of Labor Statistics' consumer price index report released Wednesday. Meanwhile, the May jobs report, while better than expected, revised downward the figures for March and April, exposing some weaknesses in the labor market. In ordinary times, the scenario of muted inflation and a job market that's starting to wobble would make cutting interest rates — a move that tends to boost the economy, sending prices and job openings higher — an easy decision for any central bank. But we aren't living in ordinary times, as CNBC's Jeff Cox pointed out. Global trade is still snarled by U.S. President Donald Trump's tariffs. Even though the United States and China seem to have reached an agreement on upholding their earlier trade pact in Geneva, there's no telling if tariff numbers will change, despite reassurances from the White House that they wouldn't. The fact that the S&P 500 fell despite the reaffirmed framework between U.S. and China is another sign investors are growing wary of taking trade pronouncements at face value. The volatile tariff situation also means that data since April, and for the foreseeable future, could be fuzzy. "Today's below forecast inflation print is reassuring – but only to an extent," said Seema Shah, chief global strategist at Principal Asset Management. "Tariff-driven price increases may not feed through to the CPI data for a few more months yet, so it is far too premature to assume that the price shock will not materialize." When it's hard to rely on official communication and hard numbers, we might just have to navigate the path ahead a little blinder than usual. S&P breaks streak and FTSE 100 hits recordU.S. stocks fell Wednesday despite positive news on trade and inflation. The S&P 500 lost 0.27% and the Nasdaq Composite retreated 0.5%, with both snapping a three-day win streak. The Dow Jones Industrial Average was flat. The pan-European Stoxx 600 shed 0.27%, but the U.K.'s FTSE 100 climbed 0.13% to close at a record level. U.S. tariffs on China won't change again: LutnickTrump said in a Truth Social post Wednesday that U.S. duties on China will total 55% — but a White House official clarified with CNBC that the figure comprises the existing 30% blanket tariffs and an additional 25% on specific products. Asked on CNBC's "Money Movers" if the current U.S. tariffs on China are not going to shift again, Commerce Secretary Howard Lutnick replied, "You can definitely say that." Consumer prices in U.S. muted in May The U.S. consumer price index for May came in at 0.1% for the month, putting the annual inflation rate at 2.4%. Economists surveyed by Dow Jones had been looking for respective readings of 0.2% and 2.4%. Excluding food and energy, the core CPI came in respectively at 0.1% and 2.8%, compared with forecasts for 0.3% and 2.9%. Following the release, U.S. Vice President JD Vance wrote on X that "the refusal by the Fed to cut rates is monetary malpractice." Jamie Dimon sees U.S. economy decliningThe impacts of the pandemic-era government spending and monetary policy that helped support the U.S. economy have faded, and that makes the country vulnerable to a downturn in the coming months, according to JPMorgan Chase CEO Jamie Dimon. "I think there's a chance real numbers will deteriorate soon," Dimon said at a Morgan Stanley conference Tuesday, according to a transcript from FactSet. Musk makes a U-turn"I regret some of my posts about President @realDonaldTrump last week. They went too far," Elon Musk on Wednesday wrote on X. Both men's public feud was sparked by Musk's opposition to Trump's "One Big Beautiful Bill Act." But tensions seem to have cooled. Musk appears to have deleted some of his social media posts, while Trump said Monday he was planning to retain Musk's Starlink technology at the White House. [PRO] Who could a 'shadow' Fed chair be?Trump might already be eyeing a replacement for the chair of the Federal Reserve. That said, Jerome Powell's term doesn't end until May 2026, so any pick would serve as a "shadow" chair who watches over the central bank and telegraphs the moves that the White House wants regarding monetary policy. CNBC's Jeff Cox breaks down the possible candidates and how they might influence markets. Dollar divorce? Asia's shift away from the U.S. dollar is picking up pace Asia is progressively moving away from the U.S. dollar, as a mix of geopolitical uncertainties, monetary shifts and currency hedging prompt de-dollarization across the region. Recently, the Association of Southeast Asian Nations, or ASEAN, committed to boosting the use of local currencies in trade and investment as part of its newly released Economic Community Strategic Plan for 2026 to 2030. The plan outlined efforts to reduce shocks associated with exchange rate fluctuations by promoting local currency settlements and strengthening regional payment connectivity. Although the shift is more pronounced in Asia, the world has also been cutting its reliance on the greenback, with the share of the dollar in global foreign exchange reserves declining from over 70% in 2000 to 57.8% in 2024.
Yahoo
2 hours ago
- Yahoo
Trump touts trade truce with China as White House searches for wins
President Trump announced Wednesday a pending trade truce with China as the White House searches for momentum ahead of a looming deadline to strike dozens of other similar deals. The president's announcement was light on details but gave Trump and his team the chance to tout a victory during a crucial stretch for his trade agenda. Trump said the deal with China, struck following negotiations in London between his top economic officials and their Chinese counterparts, set tariff rates on U.S. and Chinese imports, allowed Chinese students to attend U.S. colleges and set terms for U.S. imports of Chinese rare earth minerals. The president said the U.S. would maintain tariffs up to 55 percent on Chinese goods as part of the deal, but it was still pending final approval in both nations. It was also unclear whether the agreement reached this week was substantively different from the initial truce the U.S. and China struck in May following discussions in Geneva. White House press secretary Karoline Leavitt told reporters the U.S. 'agreed to comply with the Geneva agreement,' a reference to the initial terms struck between the Trump administration and Beijing in May to lower tariffs. The president, she said, was reviewing the details of Wednesday's deal. 'But what the president heard, he liked,' Leavitt said. Commerce Secretary Howard Lutnick told CNBC the 55 percent tariff on China is made up of a 20 percent tariff imposed this year over fentanyl concerns, a 10 percent reciprocal tariff applied to all imports and 25 percent tariffs still in place from Trump's first term. Asked if the tariff levels will not change from there, Lutnick responded, 'You can definitely say that.' It was a notable statement given Trump has repeatedly raised and lowered tariffs in the early months of his second term and created carve-outs for certain industries. Treasury Department Secretary Scott Bessent, who has emerged as Trump's top economic negotiator, hailed the deal in testimony before Congress. 'I have just returned in the middle of last night from negotiations in London with a Chinese delegation that will not only stabilize the economic relationship between our two economies, but make it more balanced,' Bessent said. Bessent also criticized Chinese production capacity and encouraged the country to pursue policies oriented to domestic consumption. 'China has a singular opportunity to stabilize its economy by shifting away from excess production towards greater consumption,' he said. Trump's announcement comes as the White House scrambles to strike deals with more than a dozen top U.S. trading partners in the wake of the president's April 2 'Liberation Day' tariff announcement. The president in April imposed more than $600 billion in import taxes on goods from nearly all U.S. trading partners, including tariffs close to 100 percent on Chinese goods. The scale of Trump's tariff plan stunned experts and investors, leading to weeks of financial market turmoil. Trump yielded to the pressure from bond markets and congressional Republicans soon after by reducing his initial tariffs to 10 percent for 90 days, a deadline set to hit July 8. Trump officials had touted plans to strike 90 deals in 90 days but so far have only announced an agreement with the United Kingdom — which was in the works before Trump imposed tariffs — before Wednesday's detente with China. Lutnick told CNBC he was optimistic about striking deals with other trading partners, which he and other top officials have said for months without announcing any agreements. 'Now, we're going to be focused, starting today. We're going to be focused on other deals. We're going to get them done. We're in good shape with lots of countries, but good shape isn't good enough for the United States of America. We want great deals that are fundamental for America. We can get them,' he said. Trump has previously suggested that if there is no agreement between the U.S. and other countries, he and his aides will determine an appropriate tariff rate to impose moving forward. But Bessent suggested in testimony to lawmakers that the July 8 deadline could have some wiggle room for certain countries. 'It is highly likely that for those countries that are negotiating — or trading blocs, in the case of the EU — who are negotiating in good faith, we will roll the date forward to continue the good-faith negotiation,' Bessent said. 'If someone is not negotiating, then we will not.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CNBC
3 hours ago
- CNBC
Asia-Pacific markets set to open mixed as investors assess Trump's 'done' deal with China
Hong Kong. Kowloon. Busy street in Mong Kok District. Acavalli | E+ | Getty Images Asia-Pacific markets were set to open mixed as traders assessed U.S. President Donald Trump's declaration that a trade deal with China was "done." Chinese imports would invite 55% tariffs, Trump suggested. Commerce Secretary Howard Lutnick confirmed that tariffs on China will stay at that level. Japan's benchmark Nikkei 225 was set to open lower, with the futures contract in Chicago at 38,330 while its counterpart in Osaka last traded at 38,400 compared with the index's last close of 38,421.19. Futures for Hong Kong's Hang Seng index last traded at 24,252, pointing to a weaker open compared to the HSI's last close of 24,366.94. Australia's S&P/ASX 200 was set to start the day higher, with futures tied to the benchmark at 8,622, compared to the index's close of 8,592.1 in the previous session. Traders will be looking toward a slate of inflation data coming out of the Philippines and Thailand later in the day. U.S. stock futures fell as traders weighed a preliminary U.S.-China trade agreement and new inflation data. S&P 500 futures traded down 0.2%, along with Nasdaq 100 futures. Futures tied to the Dow Jones Industrial Average were also lower by 72 points, or 0.2%. These moves come after U.S. consumer prices rose less than expected in Ma. The consumer price index climbed 0.1% for the month, compared with the Dow Jones forecast for a 0.2% rise. Core CPI, which excludes food and energy prices, also rose less than expected. Overnight stateside, all three key benchmarks closed lower. The market's recent run higher took a breather as major indexes ended the session near previous closing levels. Trump said earlier in a Truth Social post that the deal with China was "done, subject to final approval with President Xi and me." As part of the deal framework, he said that magnets and "any necessary rare earths" will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities, adding that "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%." — CNBC's Brian Evans, Pia Singh, Sean Conlon contributed to this report. U.S. crude oil futures rose more than 4% Wednesday on escalating tensions in the Middle East. Brent crude futures rose $2.90, or 4.34%, to close at $69.77 barrel. U.S. West Texas Intermediate crude gained $3.17, or 4.88%, to settle at $68.15. The U.S. is preparing a partial evacuation of its embassy in Iraq due to heightened security risks in the region, sources told Reuters. The U.S. military has authorized the "voluntary departure" of troops' dependents from the Middle East due to rising tensions with Iran, sources told the Associated Press. — Spencer Kimball The widely followed $39 billion 10-year Treasury auction provided some relief to investors who have been worried about global demand for the government asset. The yield of 4.221% came in 7 basis points below the level when issued. Meanwhile, the level of direct and indirect bidding took control 91% of the auction, a similar pace last month but the most since February 2023, according to Peter Boockvar, chief investment officer of Bleakley Financial Group. However, the bid to cover of 2.52 came in below the previous 12 month average of 2.57, marking the second weakest since October 2024. "The 10 yr note auction was somewhat of a mixed bag but more good than not," Boockvar said. Nonetheless, BMO's called the auction a "strong" one as demand Treasurys remains solid in the uncertain macro environment. — Yun Li
