U.S.-China Trade Framework Lacked Details, Consumer Price Inflation Accelerated In May

Barry Adams
11 Jun, 2025
New York City

Stock market indexes traded down after the U.S.-China trade announcements underwhelmed investors' expectations. 

The S&P 500 index decreased 0.2%, the tech-heavy Nasdaq Composite declined 0.3%, and the bond yield edged higher. 

At the end of two-day trade talks, the U.S. and China agreed to roll back high tariffs and resume exports of critical rare earth minerals from China, and the U.S. will permit Chinese students to continue with their college education. 

Neither side provided the details of tariffs on imports and the critical data needed for the scope of import taxes. 

 “China reaffirmed that the two sides should move toward each other, honor their words with actions, and demonstrate good faith and concrete efforts in fulfilling their commitments, jointly safeguarding the hard-won outcomes of dialogue,” China-controlled CCTV quoted Vice Premier He Lifeng. 

Despite the positive spin by the Chinese and the U.S. trade negotiators, the yield on 10-year U.S. Treasury notes is 4.48%. 

Consumer price inflation edged up in May from April, according to the latest data released by the Bureau of Labor Statistics.

The CPI index edged up to an annual increase of 2.4% in May from a four-year low of 2.3% in April and accelerated for the first time in four months. 

The core rate of inflation, which excludes volatile food and energy prices, held steady at 2.8%, the level last seen in 2021.

 

U.S. Movers 

Dave & Buster's advanced 5.6% to $27.32, and the entertainment venue and restaurant operator reported better-than-expected quarterly results. 

GitLab Inc. declined 12.8% to $42.30 despite the software platform for developers reporting better-than-expected fiscal first-quarter results.

However, the company's fiscal second quarter estimate range fell short of analysts' expectations. 

GameStop Corporation declined 4.5% to $28.77 after the electronics retailer reported weaker-than-expected revenue in the latest quarter.