US stocks down at close as investors assess trade outlook

Most US stock indexes declined at the close of Wednesday’s trading, as investors assessed the outlook for trade negotiations between Washington and other countries following the preliminary agreement reached with China, despite growing hopes for a Federal Reserve rate cut after the release of March’s inflation reading.

The Dow Jones Industrial Average was flat at 42,865 points at the close of the session.

The broader S&P 500 index declined by 0.27%, or 16 points, to 6,022 points, while the Nasdaq Composite dropped by 0.50% or 99 points to 19,615 points.

The Stoxx Europe 600 index fell 0.25% to 551 points, amid mostly negative performance across major markets.

Germany’s DAX index declined by 0.15% to 23,948 points, while France’s CAC 40 dropped 0.35% to 7,775 points. On the other hand, the UK’s FTSE 100 rose by 0.15% to 8,864 points, marking its highest closing level.

Japan’s Nikkei 225 rose by 0.55% to 38,421 points, extending its gains for the fourth consecutive session. The broader Topix index also edged up by 0.10% to 2,788 points.

Brent crude futures for August delivery increased 4.34%, or $2.90, to $69.77 per barrel.

WTI crude futures for July delivery jumped 4.88%, or $3.17, to $68.15 per barrel.

August futures for the yellow metal settled at $3,343.70 per ounce at the close of trading.

Trump announced that his country has reached a preliminary trade agreement with China after two days of negotiations in London. Under the agreement, Washington will impose a 55% tariff on Chinese goods, while Beijing will apply a 10% tariff on American products.

Annual inflation in the US rose less-than-expected in May, recording 2.4% compared to 2.3% in April, according to official data released. This was below analysts’ expectations of 2.5%, strengthening the probability that the Federal Reserve will cut interest rates at its meeting in September.