The stock markets dropped on Wednesday despite a seemingly positive development in the trade war between the U.S. and China alongside a better-than-expected inflation report for May. The S&P 500 dipped 0.27%, the Nasdaq fell 0.50%, and the Dow Jones closed the day essentially flat.
“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME,” President Donald Trump posted Wednesday morning on his social media platform, Truth Social, referring to President Xi Jinping of China.
Trump gave few specifics but said that China would continue to export magnets and rare earth materials to the U.S. and only implement a 10% tariff on American goods. The U.S., in turn, would enforce a 55% tariff on exports from the People’s Republic of China to the U.S. and let Chinese students continue to attend American colleges and universities.
Wednesday’s market dip followed a week of gains. In June, the S&P 500 neared the all-time highs it posted in February, which was shortly after the 47th president’s inauguration.
