Medora Lee, USA TODAY
4 min read
U.S. stocks erased opening losses to close higher, buoyed by gains in technology shares.
Better-than-expected results and a positive outlook from Oracle rejuvenated artificial intelligence optimsim. It was enough to overcome losses made on renewed tariff tensions and a slump in planemaker Boeing.
The blue-chip Dow edged up 0.24%, or 101.85 points, to 42,967.62; the broad S&P 500 rose 0.38%, or 23.02 points, to 6,045.26; and the tech-heavy Nasdaq added 0.24%, or 46.61 points, to 19,662.49. The benchmark 10-year Treasury yield fell to 4.359%.
President Donald Trump raised tariff tensions again by promising unilateral tariff rates within two weeks.
Shares of jet maker Boeing also weighed on the market after another deadly crash of one of its jetliners. A Boeing 787-8 Dreamliner flown by Air India carrying 242 people crashed in the Indian city of Ahmedabad. More than 200 people reportedly are dead. Boeing shares dropped 4.41%.
Trump said he will send letters to trading partners in the next couple of weeks setting unilateral tariff rates, ahead of a July 9 deadline to reimpose higher duties on dozens of economies.
Trump's new tariff threat contrasts with the more positive tone officials tried to strike after reaching a trade framework with China in London and earlier remarks from Treasury Secretary Scott Bessent.
Bessent said at a hearing before the House Ways and Means Committee however that the Trump administration was open to extending the current 90-day tariff pause beyond July 9 for the U.S.'s′ top trading partners, as long as they show “good faith” in ongoing trade negotiations.
Commerce Secretary Howard Lutnick said in a CNBC interview negotiations with the European Union have been tough but that the EU finally has "made a proper offer."
He later posted on social media that new trade quotas for British autos and American beef and ethanol will take effect in the "coming days." The U.K. and U.S. are pushing to implement their trade deal as soon as possible, he said.
Annual producer prices, or the the prices businesses pay for their goods and services, rose 2.6% in May, in line with consensus estimates. Without the volatile food and energy sectors, prices rose 3%, just cooler than expectations for 3.1%.
Some economists expect some tariff-related inflation to appear as inflation first can be seen by businesses, before price increases are passed on to consumers. However, that was not the case in May.
With producer and consumer inflation still moderating and the labor market holding up, the Federal Reserve has time to hold rates steady while it continues to watch for any tariff-fallout, economists said.
