View Live Stock Market TodayMajor Indexes Climb on Positive Trade Developments
The stock market today continues its upward momentum as major indexes closed higher on Tuesday, with investors optimistic about progress in US-China trade negotiations. The S&P 500 increased 0.6% to finish at 6,038.81, now less than 2% away from its all-time high.
In premarket movers today, futures on the S&P 500 and Dow Jones Industrial Average both fell about 0.2%, while Nasdaq 100 futures inched 0.1% lower as investors await the May consumer inflation report scheduled for release at 8:30 a.m. ET.
US-China Trade Framework Agreement Boosts Market Sentiment
The markets today are reacting to significant progress in trade negotiations between the United States and China. After two days of talks in London, officials from both countries have reached a framework agreement to ease trade tensions.
“We have reached a framework to implement the Geneva consensus,” US Commerce Secretary Howard Lutnick announced on Tuesday, indicating that the deal should resolve issues between the two countries on rare earths and magnets.
This development follows the temporary trade agreement struck in Geneva last month, which led to a market surge. The positive tone surrounding these meetings has helped lift market news today despite some lingering concerns about potential inflation impacts from tariffs.
Key Earnings Reports and Corporate News
Several companies are scheduled to report earnings before the market opens today. Chewy, Inc. (CHWY) is expected to report earnings of $0.16 per share for the quarter ending April 30, representing a 6.67% increase compared to the same quarter last year.
Victoria’s Secret & Co. (VSCO) is projected to report earnings of $0.09 per share, a 25% decrease from the year-ago quarter. J. Jill, Inc. (JILL) and Vera Bradley, Inc. (VRA) are also reporting today, with analysts expecting earnings of $0.88 and -$0.13 per share, respectively.
Brown-Forman Corporation (BF.A, BF.B), the maker of Jack Daniel’s whiskey, is also set to release its quarterly results today amid ongoing investor concerns following recent analyst downgrades.
Tech Giants Lead Market with AI Developments
In the technology sector, Meta Platforms (META) is finalizing a deal to invest $14 billion in artificial intelligence startup Scale AI and is pursuing its CEO Alexandr Wang to join META. Mark Zuckerberg is reportedly eager to leverage Wang’s expertise to build business based on AI’s technical complexities.
Additionally, OpenAI has entered a deal with Google Cloud of Alphabet Inc. (GOOGL) to meet its growing needs for computing capacity. This unexpected partnership between two AI ecosystem competitors has surprised many financial experts. Both Meta and Alphabet shares rose 1.4% and 1.2% respectively on Tuesday.
Economic Data and Fed Watch
The stock market live performance today will likely be influenced by the May Consumer Price Index (CPI) report. Analysts expect to see a slight increase in inflation for the month following former President Trump’s introduction of higher tariff rates. With the Federal Reserve’s next policy meeting scheduled for next week, investors will be closely monitoring any signs that costs associated with tariffs are being passed on to consumers.
The fear-gauge CBOE Volatility Index (VIX) was down 1.2% to 16.95 on Tuesday, indicating reduced market anxiety. Trading volume reached 18.5 billion shares, higher than the last 20-session average of 17.9 billion.
Sector Performance
Ten out of eleven broad sectors of the S&P 500 ended in positive territory on Tuesday. The Consumer Discretionary Select Sector SPDR (XLY), Communication Services Select Sector SPDR (XLC), Energy Select Sector SPDR (XLE), and Health Care Select Sector SPDR (XLV) were among the top performers, climbing 1.2%, 1.3%, 1.8%, and 1.1%, respectively.
As the market news today continues to develop, investors remain cautiously optimistic about the potential resolution of trade tensions while staying alert to inflation data that could impact Federal Reserve policy decisions in the coming weeks.