The New York stock market showed a rising trend for three consecutive days on expectations of a resolution to the U.S.-China trade negotiations taking place in London.
On the 11th, the S&P 500 index closed at 6038.81, up 33.36 points (0.55%) from the previous day.
The Nasdaq Composite Index, centered on technology stocks, recorded a gain of 152.25 points (0.78%), reaching 19,714.99.
The Dow Jones Industrial Average finished the day at 42,866.87, jumping 105.11 points (0.25%) in transaction.
Experts analyzed that optimism regarding the U.S.-China trade negotiations supported investor sentiment as all three major indices rose.
U.S. Commerce Secretary Howard Lutnick met with reporters that day and said, "I believe the negotiations are going very, very well," adding, "We are all putting in time, effort, and energy, and everyone is working closely together."
He further added, "I hope the negotiations will conclude this evening, but if necessary, they could continue until tomorrow."
U.S. and Chinese officials are coordinating details for the reduction of tariffs imposed on Chinese imports. The key U.S. demand appears to be access to China's rare earth minerals.
Kevin Hassett, Chairperson of the White House National Economic Council (NEC), stated that he expects both the Chinese rare earth export restrictions and U.S. semiconductor export limitations to be eased following these negotiations.
On this day, semiconductor stocks showed strength, as sales are expected to increase upon the resolution of the trade negotiations. Nvidia rose by 2.1%, AMD by 3.8%, and Intel surged by 4.2%.
As the conflict between CEO Elon Musk and President Trump temporarily subsided, Tesla jumped 5.7%. Tesla promoted a video showing its vehicles driving through Austin, Texas, with no one in the driver's seat, including executives like Elon Musk. The industry anticipates that Tesla may soon launch its robotaxi service.
Apple, which had fallen after the Worldwide Developers Conference (WWDC), rebounded by 1.2% on this day. Additionally, Alphabet (2.1%) and Meta (1.8%) continued to show strength, while Microsoft closed down 0.2%.
Investors are paying attention to the Consumer Price Index (CPI). Excluding volatile food and energy, the core CPI for May is expected to rise 0.3% month-over-month, marking the largest increase in four months.
If inflation comes in lower than expected, expectations will heighten that the Federal Reserve may lower interest rates, potentially fueling a stock market rally.
Tom Essaye, representative of The Sevens Report, noted in a Reuters interview that "If positive or negative trade negotiation news comes out from London, where U.S.-China talks are ongoing, it could significantly move the market."
International oil prices fell after four days. West Texas Intermediate (WTI) for July delivery settled at $64.98 a barrel, down $0.31 (0.47%).