On Wednesday, June 11, 2025, U.S. stock indexes pulled back following a recent three-day rally as investors weighed new inflation figures and developments in U.S.–China trade talks.
1. Index Overview
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S&P 500 slipped about 0.3%, ending its winning streak.
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Nasdaq Composite declined roughly 0.5%, led by weakness in tech stocks.
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Dow Jones remained mostly flat, posting only a minor dip.
Despite the pullback, both the S&P and Nasdaq remain within approximately 2% of their all-time highs.
2. Inflation and Treasury Yields
May’s Consumer Price Index showed a slight increase over April—primarily due to tariffs—keeping headline inflation around 2.4% and core at about 2.9%. The data came in lighter than many expected, prompting a drop in Treasury yields: the 10-year yield fell from about 4.47% to 4.42%. This decline boosts hopes that the Federal Reserve could consider interest rate cuts later this year.
3. U.S.–China Trade Talks
Officials from the U.S. and China reached a preliminary agreement in London to roll back tariffs and relax export restrictions on rare earths. The deal is awaiting formal approval from Presidents Trump and Xi. Over the past week, this development has helped ease market concerns about trade tensions.
4. Notable Stock Movements
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Intel (INTC) tumbled roughly 6.5%, weighed down by uncertainties around its restructuring and export dynamics.
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Nucor (NUE) fell about 6%, as U.S. and Mexico discussed swapping a 50% steel tariff for a quota system.
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Lockheed Martin (LMT) dropped around 4%, reflecting concerns over reduced F‑35 orders.
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Warner Bros. Discovery surged 5% after announcing plans to separate its TV and studio divisions.
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Starbucks climbed roughly 4.3%, fueled by news of an AI-powered barista assistant and hints of potential shifts in its China operations.
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GE Vernova gained around 3.9%, buoyed by a positive energy sector projection from Bank of America.
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Broadcom rose about 3.4%, supported by strong AI chip demand despite a cautious outlook.
5. Commodities & Crypto
Oil futures moved higher, lifting energy stocks, while gold staged a roughly 1% gain. Bitcoin remained stable in the range of $108,000 to $109,000.
🔍 Market Summary
Markets took a breather after a solid rally, but underlying sentiment remains positive—with cooler inflation, easing Treasury yields, and trade progress providing optimism. Still, risks persist, including potential inflation surprises or geopolitical flare-ups.
