Stock Market Today: Markets Rise on Tame Inflation Data and US-China Trade Progress

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Midday Market Update: Major Indexes Climb as Inflation Cools

The major U.S. stock indexes are trading higher Wednesday, June 11, 2025, as investors digest softer-than-expected inflation data and evaluate progress in U.S.-China trade negotiations. As of midday, the Dow Jones Industrial Average (DJI) is up 0.41% at 43,043.35, adding 176.48 points. The S&P 500 (^GSPC) has gained 0.31% to 6,057.77, while the tech-heavy Nasdaq Composite (^IXIC) has advanced 0.41% to 19,796.51.

The S&P 500 is now less than 2% away from its all-time high reached in February, marking a significant recovery after falling nearly 20% earlier this year. This upward momentum comes as the stock market today continues to show resilience amid economic uncertainties.

Inflation Data Boosts Rate Cut Hopes

Wednesday’s market news today was largely driven by the Consumer Price Index (CPI) report, which showed inflation rose just 0.1% in May from April, below the 0.2% estimate from economists. Core CPI, which excludes volatile food and energy prices, also increased by only 0.1%, coming in lower than expected.

“Inflation in May was lower than anticipated, suggesting the tariffs aren’t having a large immediate impact because companies have been using existing inventories or slowly adjusting prices due to uncertain demand,” said Alexandra Wilson-Elizondo, global co-CIO of multi-asset solutions at Goldman Sachs Asset Management.

The tame inflation reading has increased optimism that the Federal Reserve might consider cutting interest rates in the coming months, especially if inflation remains controlled or if the job market shows signs of weakening.

US-China Trade Negotiations Show Progress

In a significant development for the markets today, U.S. and Chinese officials have reached a consensus after trade talks in London. Under the preliminary framework, China would approve exports of rare earth minerals while the U.S. would roll back restrictions on the sale of advanced technology to China.

The trade negotiations, led by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer, have been closely watched by investors. This follows a 90-day pause of tariff implementations agreed upon in May, where both countries decided to reduce “reciprocal” tariffs from 125% to 10%.

Notable Stock Movers in Today’s Session

Several stocks are making significant moves in today’s midday market update:

Tesla (TSLA) shares have risen more than 1.75% to $331.79, on track for their fourth straight winning day. The surge comes after CEO Elon Musk made comments regarding his social media posts about former President Trump.

Quantum computing stocks are experiencing a remarkable rally, with Quantum Computing Inc. (QUBT) surging 29.21% to $19.55 and Rigetti Computing (RGTI) climbing 16.94% to $13.14. This follows Nvidia CEO Jensen Huang’s comments that the quantum computing space is reaching an inflection point.

Meta Platforms (META) is finalizing a $14 billion investment in AI startup Scale AI and is pursuing its CEO Alexandr Wang to join the company. Meanwhile, OpenAI has entered a deal with Google Cloud of Alphabet Inc. (GOOGL) to meet its growing computing capacity needs. Meta and Alphabet shares rose 1.4% and 1.2%, respectively.

On the downside, Chewy Inc. (CHWY) has dropped 11.14% to $40.70 following its earnings report for the quarter ending April 30, 2025.

Upcoming Market Events to Watch

Investors should keep an eye on several key earnings reports and economic events in the coming days. Today’s pre-market earnings included reports from Chewy (CHWY), Victoria’s Secret (VSCO), J. Jill (JILL), and Vera Bradley (VRA).

The Federal Reserve’s next policy meeting will be closely watched for signals about potential interest rate cuts, especially in light of today’s softer inflation data. Market participants will also continue to monitor developments in the U.S.-China trade negotiations, as Commerce Secretary Lutnick and Trade Representative Greer return to Washington to secure President Trump’s approval of the framework.

Market Outlook

As the stock market live session continues, analysts remain cautiously optimistic about the market’s trajectory. The combination of cooling inflation, progress in trade negotiations, and strong performance in technology stocks, particularly in the AI and quantum computing sectors, has created a favorable environment for equities.

However, investors should remain vigilant about potential volatility, especially as markets approach record highs and as more economic data becomes available in the coming weeks. The ongoing developments in U.S.-China relations and upcoming corporate earnings will likely continue to influence market sentiment in the near term.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.