The Dow Jones Industrial Average ended unchanged, while the Nasdaq fell by 0.27%, and the broader S&P 500 lost 0.50% at the close of today’s session.
“We had a roller-coaster session today,” summarized Sam Stovall from CFRA in statements to AFP.
“The market capitalized on the day’s news,” analysts at Briefing.com indicated.
On Wednesday, at the beginning of the session, “the market experienced a significant rise due to lower-than-expected inflation figures,” observed Stovall.
In May, consumer prices increased by 2.4% year-on-year, compared to 2.3% in April, according to the consumer price index (CPI), which met expectations. Some information turned out better than expected.
On a monthly basis, the CPI was 0.1%, below April’s 0.2%, dragged down by a decline in energy prices.
Excluding more volatile items such as energy and food, this index has been evolving at the same pace (2.8% year-on-year) since March, when analysts anticipated a slight acceleration to 2.9% in May.
Investors were interpreting announcements related to negotiations between China and the U.S. on their respective tariffs.
Representatives from both countries announced on Tuesday night that they had reached an agreement on a “general framework” to resolve their trade disputes.
Donald Trump today praised these negotiations, which, he assured, should allow the supply of Chinese rare earths to the U.S., lauding an “excellent” relationship with China.
However, market operators are awaiting more details about this preliminary agreement.
The downturn in the stock market “is simply because the market advanced very quickly in a short time and needs to digest the gains,” highlighted Stovall.
