Major indexes on the New York Stock Exchange started with mixed trends following news of the U.S.-China trade negotiations. Market participants are waiting and observing as they await the results of the negotiations.
As of 10:21 a.m. on the 9th (local time), the Dow Jones Industrial Average was down 104.89 points (0.25%) from the previous session at 42,657.98 on the New York Stock Exchange (NYSE). The Standard & Poor's 500 index rose 8.45 points (0.14%) to 6,008.81, while the Nasdaq index moved up by 90.28 points (0.46%) to 19,622.73.
On this day, the United States and China met in London, England, to start their second high-level trade negotiations. This is the second meeting after the first negotiations held in Geneva, Switzerland, last month. The export restrictions on industrial materials and technology from both countries are expected to be major agenda items during this round of negotiations. The outcome of these negotiations will likely determine the direction of the stock market moving forward.
Reuters reported that the trade negotiations between the two countries are heightening investors' expectations. Chris Veron, chief market strategist at Strategas Research, noted, "The market flow is showing positive signals," and added, "The strength of cyclical stocks over defensive stocks reflects the health of the economy.
The market is reflecting expectations that the negotiations will end positively. Nvidia is trading at $144.42, up $2.69 (1.9%) from the previous session. Semiconductor-related stocks, including AMD, Marvell Technology, and Broadcom, are all on the rise. Analysts attribute this to increased expectations regarding China's rare earth exports and the easing of U.S. export controls on artificial intelligence (AI) semiconductors.
By sector, quantum computing corporation IonQ is showing a 2.95% gain after announcing plans to acquire Oxford Ionics in the United Kingdom. Tesla is down 0.38% as some credit ratings have been downgraded. Warner Bros. Discovery surged 7% on news that it will be publicly listed after partitioning into a global network company and a streaming/studio company.
Along with the results of the U.S.-China trade negotiations, the market's attention is also focused on the consumer price index (CPI) and producer price index (PPI) for May, which are scheduled to be released this week. These indicators are set to be announced on the 11th and 12th. The University of Michigan's consumer sentiment index, which includes inflation expectations, will be released on the 13th.
International oil prices have risen for three consecutive trading days. The front-month July West Texas Intermediate (WTI) crude oil rose by $0.38 (0.5%) to $64.95 per barrel. The price of Brent crude for August delivery has increased by $0.22 (0.33%) to $66.69.