FX.co ★ US Stocks Waver

The three major U.S. stock indices experienced fluctuations around the baseline on Wednesday, as investors evaluated a Consumer Price Index (CPI) report that fell short of expectations and considered the ongoing developments in the U.S.-China trade dispute. Key indicators of inflation were lower than anticipated, indicating that consumers might not yet be experiencing the effects of President Trump's tariffs. This could be due to the most severe tariffs being temporarily on hold or businesses absorbing the extra costs. The report strengthened the perspective that the Federal Reserve might implement two rate cuts this year. Meanwhile, President Trump announced that a trade agreement with China had been reached. Following two days of negotiations, representatives from the U.S. and China agreed upon a framework to execute the Geneva consensus. However, the lack of specific details and the necessity for final approval from President Donald Trump and President Xi Jinping maintained a level of caution in the markets. The health and consumer discretionary sectors outperformed, while the industrial and materials sectors underperformed.