Wall Street’s major indices subdued on Tuesday as investors continue to wait updates from the ongoing trade negotiations between the United States and China. These talks aim to de-escalate a tariff dispute that has impacted global markets throughout the year.
At the opening bell, the Dow Jones Industrial Average (.DJI) saw a slight dip, falling 23.5 points (0.05%) to 42,738.27. In contrast, the S&P 500 (.SPX) edged up 4.0 points (0.07%) to 6,009.91, and the Nasdaq Composite (.IXIC) gained 28.9 points (0.15%), reaching 19,620.108.
High-stakes trade negotiations between the United States and China entered their second day in London on Tuesday, with U.S. Commerce Secretary Howard Lutnick expressing optimism about the progress being made. The two global economic powerhouses are striving to find common ground on contentious export controls, a disagreement that has threatened to ignite a new trade dispute over Trump Tariffs. The current round of talks aims to resolve accusations from both sides of attempting to disrupt global supply chains through various export restrictions.
A key point of discussion has been the U.S. stance on export controls on goods like semiconductors. White House economic adviser Kevin Hassett indicated on Monday that the U.S. could consider lifting these restrictions if China accelerates the delivery of rare earths and magnets, materials deemed critical to the U.S. economy.
Trump tariff policies have caused significant disruption across global markets, leading to considerable congestion and confusion at major ports worldwide. Businesses have borne the brunt of these policies, facing tens of billions of dollars in lost sales and increased operational costs. The current round of U.S.-China talks, which follows a rare phone conversation between President Trump and Chinese President Xi Jinping last week, is unfolding at a critical juncture for both of the world’s largest economies.