The major indices on the New York Stock Exchange started mixed despite the news that the U.S. consumer price index (CPI) for May fell short of market expectations and that the U.S. and China agreed on the basic framework of a trade agreement.
As of 9:40 a.m. Eastern Daylight Time on the 11th, the Dow Jones Industrial Average is trading at 42,830.56, down 36.31 points (0.08%) from the previous session, while the S&P 500 index rose 2.61 points (0.04%) to 6,041.42, and the Nasdaq index showed an increase of 35.47 points (0.18%) to 19,750.46.
The U.S. CPI for May, announced before the market opened that day, increased by 0.1% compared to the previous month, falling short of market expectations of 0.2%. The core CPI, excluding volatile food and energy prices, also rose just 0.1% from the previous month, underperforming expectations.
High-level delegations from the U.S. and China reached an agreement on the basic framework of a trade deal during talks held in London. China will allow exports of rare earth elements, and the U.S. will ease restrictions on exporting advanced technology to China.
U.S. President Donald Trump said via his social media platform, Truth Social, that "the U.S.-China trade agreement is basically finalized with only final approval from President Xi Jinping remaining." He noted, "The U.S. will impose a total tariff of 55%, while China will maintain a tariff level of about 10%."
Trump also explained, "China will proactively supply magnets and essential rare earth elements, and the U.S. will allow Chinese students to enroll in domestic universities," adding that "U.S.-China relations are very good."
On that day, sector performance showed mixed trends. Healthcare rose 0.5%, consumer discretionary increased by 0.4%, and real estate was up 0.3%, while materials fell 0.8% and industrials dropped 0.7%.
In terms of individual stocks, companies related to quantum computing are showing a strong upward trend after NVIDIA CEO Jensen Huang mentioned that "the quantum computing sector is at a turning point." Shares of Quantum Computing are up 29%, while Rigetti Computing and IonQ have surged 16% and 6%, respectively.
On the other hand, although GameStop succeeded in turning a profit in the first quarter, investors are disappointed that there have been no announcements regarding additional Bitcoin purchases, causing its stock to drop by 4%.
Sunrun, a solar energy-related stock, fell 4% after Jefferies downgraded its investment rating from "hold" to "reduce." Jefferies warned that the company could face headwinds if the federal budget does not include policies related to residential solar energy.
European stock markets are generally on a downward trend. The Euro Stoxx 50 index has fallen by 0.24%. The German DAX index is down 0.05%, while the French CAC 40 index has decreased by 0.10%, and the British FTSE index has risen by 0.10%.
International oil prices are rising after a decline the previous day. As of 9:35 a.m., the price of West Texas Intermediate (WTI) crude oil for July delivery is up 1.86%, trading at $66.19 per barrel, while the price of Brent crude for August delivery has increased by 1.53% to $67.89 per barrel.