New York, June 10, 2025 — U.S. markets delivered a mixed performance on Monday, with the S&P 500 and Nasdaq Composite notching fresh late-February highs amid heightened attention on the inaugural U.S.-China economic consultation talks. The Nasdaq Golden Dragon Index of Chinese stocks led gains, surging 2.1%, as investors bet on potential trade tension relief, while oil prices hit a four-month peak and California launched a legal challenge to federal deployments.
Market Dynamics: Tech Sector Divides, Chinese Equities Shine
Major Indices:
Dow Jones Industrial Average: Flat at 42,761.76
S&P 500: Edged up 0.09% to 6,005.88, extending its post-February rally.
Nasdaq Composite: Rose 0.31% to 19,591.24, driven by tech-sector resilience.
Tech Sector Split:
Winners: Tesla surged 4%on upbeat delivery forecasts, while Google (Alphabet) and Amazon added over 1% each.
Losers: Apple fell 21%despite announcing new software updates at its Worldwide Developers Conference, with investors shrugging off the innovations. Netflix dipped 1.1%.
China Equity Rally:
The Nasdaq Golden Dragon Index vaulted 1%, led by e-commerce and tech firms. Yatsen Holding (Parent of Perfect Diary) soared 14%, Kingsoft Cloud gained 9%, and XPeng rose 6%, reflecting optimism about the U.S.-China talks’ potential to ease trade barriers.
U.S.-China Talks Take Center Stage
The first U.S.-China economic consultation meeting, held in London on June 9 with discussions continuing Tuesday, dominated market sentiment. Investors flocked to Chinese equities and U.S. semiconductor stocks, viewing both sectors as potential beneficiaries of improved trade relations. Analysts noted that any progress in negotiations could alleviate supply chain pressures and boost cross-border investment.
Commodities: Oil Rises on Short-Covering, Silver Spikes on Inflation Fears
Crude Oil:
WTI futures advanced 24%to settle above $65 per barrel, their highest level since April. The rally was driven by short-covering from commodity trading advisor (CTA) funds and growing concerns over potential supply disruptions tied to the Iran nuclear standoff.
Precious Metals:
London silver prices surged 3%, narrowing the gold-silver ratio to near historical averages. The move came as investors sought inflation hedges amid uncertainty over tariff impacts on consumer prices.
California Challenges Federal Orders：Inflation Expectations Ease
Legal Dispute:
California’s state government filed a lawsuit to block President Trump’s June 7 order deploying the National Guard to Los Angeles, arguing the move exceeds federal authority. The legal battle adds to political tensions ahead of key midterm elections.
Inflation Outlook:
A New York Fed survey showed consumers now expect 12-month inflation to hit 2%, down from 3.6% in May. Three-year and five-year inflation expectations also ticked lower to 3.0%and 2.6%, respectively. April’s CPI rose 2.3% year-over-year (below the 2.4% forecast), with core CPI at 2.8%. However, markets remain cautious, as economists warn tariff effects on prices have yet to fully materialize.
Analyst Insights: Tariffs’ Lagging Impact and Fed Policy
JPMorgan:
The firm noted that while tariffs may temporarily lift inflation, their full impact could be delayed until 2026, with fiscal stimulus adding further upward pressure. Strategists forecast the 10-year Treasury yield to fluctuate between 5% and 5.0%as the Fed navigates growth and price stability.
Goldman Sachs:
Analysts highlighted that corporate inventory stockpiling may have delayed price hikes, but sustained cost pressures could force the Fed to postpone rate cuts. “The April CPI doesn’t reflect the full tariff effects,” noted Fed journalist Nick Timiraos, suggesting the central bank may wait for clear signs of peaking inflation before adjusting policy.
As U.S.-China negotiations progress and inflation data unfolds, markets will closely monitor whether trade easing can counterbalance mounting economic headwinds, including tariff-driven costs and political uncertainties.
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- WTI Slips as U.S. Crude Stockpiles Rise, Demand Concerns Resurface
