Inflation Stays Tame; Fed Seen Holding Steady
📰 Market Snapshot (Early Wednesday)
Wall Street stocks opened slightly higher after optimism returned to U.S.-China trade relations and inflation data offered no surprises:
- Dow Jones: Flat at 42,861.97
- S&P 500: +0.1% to 6,041.15
- Nasdaq Composite: +0.1% to 19,743.54
The modest moves reflect continued caution amid geopolitical complexity, despite bullish headlines.
🇺🇸🇨🇳 Trade Talks Back on Track?
President Donald Trump declared “our deal with China is done” after two days of discussions in London — a surprise turn after weeks of tension.
Key notes:
- Rare earths and Chinese student access to U.S. universities will remain subject to presidential discretion.
- Chinese officials echoed progress, helping risk appetite recover modestly.
Investors are watching for concrete deal details before fully pricing in a détente.
📈 CPI: Inflation Ticks Up, But Tariff Effects Still Unclear
- U.S. CPI (YoY): +2.4% in May, up slightly from 2.3% in April
- Analysts say this doesn’t yet capture the full impact of recent tariff hikes
🎙️ Market Take:
“Today’s inflation data will not change the minds of the Fed to remain cautious,” said Peter Cardillo of Spartan Capital.
The data reinforces expectations that the Federal Reserve will stay on hold until clearer signs emerge of either inflation persistence or economic weakness.
📊 Outlook: Calm Before a Potential Storm?
Markets remain muted for now, with eyes on:
- Further trade clarifications
- Upcoming Fed speakers
- Friday’s key Nonfarm Payrolls report
With equities near record highs and economic crosscurrents intensifying, volatility may reawaken quickly on any policy or data surprise.
