Dow Jones finishes flat as markets digest tentative U.S.-China trade deal

Wall Street steadies Wednesday, indices end modestly lower or unchanged

Lola Evans
12 Jun 2025, 01:45 GMT+10

Dow Jones finishes flat as markets digest tentative U.S.-China trade deal

NASDAQ Composite: Underperformed with a close at 19,615.88, falling 99.11 points (0.50 percent).
Dow Jones Industrial Average: Finished essentially flat at 42,865.77, down just 1.10 points (0.00 percent).
Standard and Poor's 500: Closed at 6,022.24, declining 16.57 points (0.27 percent).

NEW YORK, New York - U.S. stocks closed modestly lower Wednesday despite a tentative trade agreement between the United States and China being cloncluded at talks in London. The deal is subject to the final approval of U.S. President Donald Trump and China's President Xi Jinping.

Separately the CPI for May came in at 0.1 percent, below the 0.2 percent expected. The May increase annualized is 2.1 percent, virtually aligned with Fed planning.

"Inflation in May was lower than anticipated, suggesting the tariffs aren't having a large immediate impact because companies have been using existing inventories or slowly adjusting prices due to uncertain demand," Alexandra Wilson-Elizondo, global co-CIO of multi-asset solutions at Goldman Sachs Asset Management told CNBC Wednesday.

"As we wait for the 90-day tariff pause to pass, the market will be caught between inflation and job prints. If inflation stays under control or the job market weakens, the Federal Reserve will likely consider cutting interest rates down the road," Wilson-Elizondo added.

Wednesday's U.S. Stock Market Performance

Standard and Poor's 500: Closed at 6,022.24, declining 16.57 points (0.27 percent) on moderate trading volume of 2.916 billion shares.
Dow Jones Industrial Average: Finished essentially flat at 42,865.77, down just 1.10 points (0.00 percent) with 456.357 million shares traded.
NASDAQ Composite: Underperformed with a close at 19,615.88, falling 99.11 points (0.50 percent) on heavier volume of 9.184 billion shares.

The tech-heavy NASDAQ led declines as megacap growth stocks faced pressure amid rising Treasury yields. The Dow showed remarkable resilience, nearly erasing early losses to end virtually unchanged.

Market Analysis

Wednesday's trading reflected ongoing sector rotation, with investors showing caution toward high-valuation tech stocks while seeking value in other segments. The mixed performance suggests markets remain in consolidation mode following recent rallies as traders await fresh economic catalysts.

U.S. Dollar Splits Wednesday as Euro and Pound Gain, Commodity Currencies Weaken

The foreign exchange market saw a divided performance on Wednesday, with the U.S. dollar showing strength against some currencies while retreating against others. The euro and British pound advanced, while commodity-linked currencies like the Australian and New Zealand dollars declined.

Key Currency Movements

EUR/USD (Euro / US Dollar): Rose to 1.1482, gaining 0.54 percent as the euro extended its recent rebound.
USD/JPY (US Dollar / Japanese Yen): Slipped to 144.61, down 0.17 percent amid slight yen strength.
USD/CAD (US Dollar / Canadian Dollar): Held steady at 1.3669, unchanged as oil prices offset dollar momentum.
GBP/USD (British Pound / US Dollar): Climbed to 1.3538, up 0.34 percent on improved UK economic sentiment.
USD/CHF (US Dollar / Swiss Franc): Fell to 0.8204, dropping 0.26 percent as the Swiss franc regained some ground.
AUD/USD (Australian Dollar / US Dollar): Declined to 0.6497, losing 0.37 percent amid weaker commodity demand.
NZD/USD (New Zealand Dollar / US Dollar): Dropped to 0.6025, down 0.42 percent, underperforming other major currencies.

Market Drivers

The euro's rally continued as traders adjusted positions ahead of key Eurozone economic data. Meanwhile, the British pound found support despite lingering economic uncertainties. Commodity currencies struggled as global growth concerns weighed on risk appetite.

The US dollar index was little changed overall, reflecting a balancing act between Federal Reserve policy expectations and global market sentiment.

Global Markets Show Mixed Performance on Wednesday

Global stock indices delivered a mixed performance on Wednesday, with some markets posting gains while others dipped into negative territory. While European markets saw slight declines, Asian indices mostly posted gains, led by strong performances in Hong Kong, South Korea, and Taiwan. Investors remain cautious amid fluctuating economic signals, with some markets consolidating after recent rallies.

Here's a breakdown of the key closing figures:

Canada

S&P/TSX Composite: Rose to 26,524.16, gaining 97.85 points (0.37 percent) with 280.793 million shares changing hands.

UK and Europe

FTSE 100 (UK): Rose to 8,864.35, up 11.27 points (0.13 percent).
DAX (Germany): Slipped to 23,948.90, down 38.66 points (0.16 percent).
CAC 40 (France): Fell to 7,775.90, losing 28.43 points (0.36 percent).
EURO STOXX 50: Dropped to 5,393.15, declining 22.23 points (0.41 percent).
BEL 20 (Belgium): Closed at 4,538.65, down 17.25 points (0.38 percent).

Asia and Pacific

Hang Seng (Hong Kong): Jumped to 24,366.94, gaining 204.07 points (0.84 percent).
SSE Composite (Shanghai): Closed at 3,402.32, rising 17.50 points (0.52 percent).
STI (Singapore): Eased to 3,919.05, down 14.75 points (0.37 percent).
S&P/ASX 200 (Australia): Inched up to 8,592.10, adding 4.90 points (0.06 percent).
All Ordinaries (Australia): Closed at 8,819.70, up 7.00 points (0.08 percent).
S&P BSE SENSEX (India): Rose to 82,515.14, climbing 123.42 points (0.15 percent).
IDX Composite (Indonesia): Dipped to 7,222.46, losing 8.29 points (0.11 percent).
KLSE (Malaysia): Gained to 1,523.84, up 6.89 points (0.45 percent).
S&P/NZX 50 (New Zealand): Advanced to 12,605.93, rising 41.51 points (0.33 percent).
KOSPI (South Korea): Surged to 2,907.04, up 35.19 points (1.23 percent).
TWSE (Taiwan): Rallied to 22,470.10, adding 227.96 points (1.02 percent).
Nikkei 225 (Japan): Climbed to 38,421.19, gaining 209.68 points (0.55 percent).