US stock markets edged higher on Tuesday, boosted by gains in chipmakers like Nvidia. Investors are awaiting progress in negotiations between the US and its global trading partners. Markets are focused on Washington’s tariff policy, which has recently created uncertainty in the economic outlook.
The White House confirmed that President Donald Trump and Chinese President Xi Jinping are expected to meet this week.
This development comes shortly after Trump accused China of failing to meet its commitments to reduce tariffs and trade restrictions. According to a draft letter seen by Reuters, the Trump administration is asking its trading partners to submit their best offers by Wednesday. The aim is to accelerate negotiations before its self-imposed deadline, which expires in five weeks. Last week, Trump announced plans to raise tariffs on steel and aluminum imports to 50%, causing concern among global investors and dragging down markets nearing record highs. However, Trump’s more conciliatory language in recent days has led to a recovery in risky assets. The S&P 500 and Nasdaq both recorded their strongest monthly gains since November 2023 in May. The S&P 500 index is currently only 4% below its all-time high seen in February.Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, said, “The market is still uncertain; it is waiting to see how these negotiations will turn out. Setting a deadline for final offers and creating a clear framework could be a positive trigger for the markets.”
As of 10:40 ET, the latest indices are as follows:
- Dow Jones: +10.40 points (0.02%) → 42,315.12
- S&P 500: +10.39 points (0.17%) → 5,946.18
- Nasdaq Composite: +87.28 points (0.46%) → 19,330.74
Sectoral performance was mixed: Across 11 sectors of the S&P 500 Six showed a decline.
- The Communication Services sector was the biggest loser with a 0.7% decrease.
- The Information Technology sector, on the other hand, showed the strongest performance with a 0.8% increase; This was influenced by Nvidia’s 2.7% rise.
- Broadcom shares also rose 2.1% ahead of the upcoming earnings announcement.
Constellation Energy gained 2.9% after Meta Platforms announced it would purchase energy from the company’s nuclear facility. This news also boosted other nuclear energy stocks such as Vistra Corp (+4.4%), GE Vernova (+1.8%), and NuScale Power (+2.1%).
On the economic front, the US Department of Labor reported an increase in job postings in April, but also a rise in layoffs. This may indicate a cooling of the labor market amid trade-related uncertainties.
Investors are also focused on messages from key Fed officials who will be speaking later in the day.
Speakers include Federal Reserve Board Member Lisa Cook, Chicago Fed President Austan Goolsbee, and Dallas Fed President Lorie Logan.
