Stan Choe, AP Business Writer
NEW YORK (AP) – U.S. stocks are drifting just below Tuesday’s all-time high as ongoing trade talks between the US and China wait for what happens.
The S&P 500 was 0.3% higher in afternoon trading as consultations took place between the two largest economies in the world on the second day. The Dow Jones industrial average rose 73 points (0.2%) as of 1:54pm east time, with the Nasdaq Composite rising 0.3%.
Stock prices went up two months before President Donald Trump shocked financial markets with his stiff, widespread tariff announcements, after falling about 20% above record. The S&P 500 has returned to within the all-time high of 2% set in February as most of the rally wanted Trump to lower his tariffs after reaching trade deals with countries around the world.
There will be time to see if such a wish is guaranteed. U.S. Secretary of Commerce Howard Lutnick said talks with China were “going well” and “going well.” He expected them to last all day in London.
Both the US and China have placed many of the tariffs they opposed each other in a suspension as talks continue.
Many tariffs are pending for now, but due to all the uncertainty they have created, they still have an impact on the company and their ability to make profits.
The designer brand, the company behind the DSW shoe store chain, has become the latest US company to yank financial forecasts for 2025 due to “uncertainty primarily due to global trade policy.”
The company, which also owns KEDS, Jessica Simpson and other shoe brands, has reported greater losses than analysts had expected, and its revenues have also not yet reached forecasts. CEO Doug Howe noted “continuous instability and pressure on consumer discretion” spending, with the company’s stock down 21.2%.
Certainly, uncertainty moves in both directions. The survey released on Tuesday of optimism among small businesses in the US has improved slightly in May.
“The economy will continue to go smoothly until a major source of uncertainty is resolved, but owners have reported better expectations regarding business conditions and sales growth,” according to Bill Dunkilberg, chief economist for the National Federation of Independent Enterprises.
On Wall Street, JM Smucker fell 14.8% despite the latest quarter results that surpassed analyst expectations. As was the case with the forecast for profit for next year, revenues did not meet expectations.
Tesla helped offset such losses after a 4% rise. The electric car company has been recovering a bit since falling last week as its relationship with Trump collapsed. It sparked fears about possible US government retaliation against Tesla.
Shares trading at the US chip-making giant Taiwanese semiconductor manufacturer rose 2.4% after the company known as TSMC said its revenues in May had jumped nearly 40% from the previous year.
Casey’s general stores jumped 11.6% after an Ankeny, Iowa-based convenience store chain reported profits were stronger in the recent quarter than analysts expected. We celebrated the strengths of selling hot sandwiches and other items.
In the overseas stock market, indexes were mixed amidst the predominantly modest movements in Europe and Asia. A 0.8% drop in German DAX and a 06% profit in South Korea’s Kospi was part of a bigger move.
In the bond market, the 10-year Treasury yield eased from 4.49% to 4.47% late Monday.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original issue: June 10th, 2025 10:16am EDT
