Market Recap – Wednesday, June 11, 2025

US Stocks Slip as Trade Talks and Global Tensions Weigh on Markets

Stocks ended mostly lower today. While the S&P 500 and Nasdaq both dropped a bit, the Dow stayed flat. Some big tech companies like Tesla and Google saw slight gains, but other sectors like industrial metals, homebuilders, and rare earths struggled.

Energy stocks were the big winners today, boosted by a 4.9% jump in oil prices due to worries about global tensions. Other strong performers included quantum computing, utilities, and legacy car companies. On the flip side, industries like insurance, retail, and exchanges didn’t do so well.

The biggest news was the US-China trade talks in London. The two countries agreed to ease some restrictions, especially on rare earth materials, but there’s still some uncertainty. China is only giving a six-month window for these rare-earth exports, which might cause problems if trade tensions flare up again. On a positive note, inflation numbers for May came in lower than expected, which helped the bond market and gave investors some relief.

Looking ahead, everyone will be watching for more news from the trade talks and a big bond auction this week. There’s also consumer sentiment and more inflation data coming soon.

Here's Our Take

Investors should keep an eye on the US-China talks, especially the issues around rare earth materials. The lower-than-expected inflation numbers could mean the Fed might hold off on raising rates for a while, but there are still concerns about inflation. For now, it might be wise to stick with sectors like energy and tech that are performing well, while waiting for more clarity on the trade and inflation situation in the coming days.

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