MARKET SNAPSHOT

U.S. stocks posted small losses as inflation continued to show little signs of a tariff impact and China temporarily restored rare-earth licenses for American companies. Treasury yields fell on softer-than-expected inflation data for May -- keeping the Fed on track to hold rates steady next week. Oil prices rose significantly on the trade news and doubts about a nuclear agreement between Iran and the U.S. Gold was flat and the dollar fell.

MARKET WRAPS

EQUITIES

U.S. stocks ended lower after fresh data showed the annual rate of inflation edged up to 2.4% in May, from 2.3% in April, matching the expectations of economists polled by The Wall Street Journal.

The Dow Jones Industrial Average ended unchanged, while the Nasdaq Composite and S&P 500 pared gains and traded close to flat.

President Trump responded to the inflation data by repeating calls for the Federal Reserve to slash interest rates by a full percentage point. Meanwhile, The Wall Street Journal reported that China, as part of a trade deal, is putting a six-month limit on rare-earth export licenses for U.S. automakers and manufacturers, an arrangement that provides some relief to American industry but gives Beijing leverage if trade tensions flare up again.

Earlier Wednesday, Asian stocks rose, having opened on a cautiously optimistic note after Chinese and U.S. negotiators reached a framework aimed at putting their trade truce back on track.

China's Shanghai Composite Index closed 0.5% higher, led by gains in metal and auto stocks. The Shenzhen Composite Index was 0.7% higher and the ChiNext Price Index ended up 1.2%. Hong Kong's Hang Seng Index rose 0.8%.

Stocks in Japan ended higher, as the Nikkei Stock Average increased 0.5%.

Stocks in Australia rose, as the S&P/ASX 200 Benchmark Index rose 0.1%, the second consecutive session of increases. Stocks in New Zealand also gained, with the S&P/NZX 50 Index up 0.3%.

COMMODITIES

Oil futures extended gains to recover "Liberation Day" levels as the U.S. and China reached a tentative trade agreement.

West Texas Intermediate settled up 4.9% at $68.15 a barrel, while Brent crude rose 4.3% to $69.77.

Other bullish news included doubts about the U.S. and Iran reaching a nuclear deal, a lower than expected U.S. inflation reading, and the EIA's report of a bigger-than-expected 3.6 million barrel draw in U.S. crude stocks as refineries processed more oil, noted Mizuho's Robert Yawger.

Gold finishes flat as wider markets digested the implications of President Trump's announcement of a tentative trade deal with China.

Front-month Comex June gold closed up 0.01% to $3,321.30 a troy ounce.

TODAY'S TOP HEADLINES

China Puts Six-Month Limit on Its Ease of Rare-Earth Export Licenses

China is putting a six-month limit on rare-earth export licenses for U.S. automakers and manufacturers, according to people familiar with the matter, giving Beijing leverage if trade tensions flare up again while adding to uncertainty for American industry.

Beijing's agreement to temporarily restore rare-earth licenses was one of the key breakthroughs in the latest round of intense trade talks in London, but the six-month limit illustrated how each side is retaining the tools to easily escalate tensions again.

In exchange for the Chinese easing rare-earth curbs for now, the people said, U.S. negotiators agreed to relax some recent restrictions on the sale to China of products such as jet engines and related parts, as well as ethane, a component of natural gas important in manufacturing plastics.

Trump Says Deal Restoring China Trade Truce Is Done

LONDON-President Trump said the U.S. deal with China to revive their trade truce was done, subject to final approval from him and Chinese leader Xi Jinping.

Posting on his Truth Social platform on Wednesday, Trump said China would supply critical rare earths and magnets up front, and Chinese students would be able to attend U.S. colleges and universities. "WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%," he added.

Tariffs will stay at levels agreed to in the deal signed in Switzerland, an administration official confirmed. Trump said in his post that the U.S. would set a "total of 55% tariffs"-a reference to the 30% tariffs applied in his second term, added to duties imposed during the president's first term.

Muted May Inflation Defies Tariff Fears

Inflation was tame in May, defying fears that the impact of President Trump's tariffs would start to show a rise in prices.

Consumer prices rose 0.1% in May over the previous month, less than economists anticipated. Year-over-year inflation was 2.4%, in line with expectations and near a four-year low recorded in April.

Stocks turned down in afternoon trading.

U.S. Ambassador to Canada Says Breakthrough Possible in Bilateral Talks at G-7 Summit

OTTAWA-President Trump is keen to conclude a new economic-and-security pact with Canada as quickly as possible, with the possibility of a breakthrough when Trump meets Prime Minister Mark Carney at the Group of Seven summit in Alberta, Washington's chief envoy in Ottawa said.

U.S. Ambassador to Canada Pete Hoekstra told a blue-chip luncheon crowd in the capital that all indications point to the possibility of a good deal for both countries, although cautioning the imposition of tariffs remains a key policy priority for the president.

Trump and Carney "are two leaders in a hurry to get things done that they believe are absolutely critical," Hoekstra said during a question-and-answer session. He added that he believes that both Trump and Carney view the G-7 summit as "an inflection point" in the negotiations. After Carney's trip to the White House last month, U.S. and Canadian officials have been engaged in negotiations on a new bilateral economic-and-security pact in which Ottawa is pushing for Trump to drop all tariffs on certain Canadian imports.

Oracle Shares Jump as CEO Targets 'Dramatically Higher' Revenue Growth

Oracle logged double-digit revenue growth in the fourth quarter and set its sights on even bigger gains in the fiscal year ahead, pushing shares higher after hours.

The cloud-services company said revenue was up 11% to $15.9 billion in the quarter-ended May 31, topping analyst forecasts for $15.58 billion, according to FactSet.

Shares rose 7.3% to $189.09 in after-hours trading.

Disney, Universal Sue Midjourney Over AI-Generated Princesses and Minions

Disney and Universal, the studios behind Princess Elsa and the Minions, have come together to fight an AI company they allege is stealing their intellectual property.

The two entertainment companies filed a lawsuit Wednesday against artificial-intelligence provider Midjourney, claiming it illegally made copies of the studios' copyrighted works.

Hollywood companies are struggling to confront the growing popularity of generative AI and keep control over their valuable characters. While studios, including Disney, have held discussions with generative AI providers like OpenAI about licensing their content, many have been hesitant to do so for fear of losing say in how their intellectual property is being used.

Auto-Parts Bankruptcy Is the First Big Casualty of Tariff War

A key supplier to Nissan and Jeep owner Stellantis filed for bankruptcy protection, marking one of the first big companies to collapse under the weight of the Trump administration's tariffs.

Marelli, which supplies lighting and other internal electronics, has been struggling with losses and a hefty debt load for years. It said it expects to continue operating in a deal with creditors and lenders that will provide more than $1 billion to finance its restructuring.

The company has more than 40,000 employees around the globe. It was formed in 2019 when private-equity firm KKR bought a Fiat Chrysler auto-parts business and merged it with a Japanese-based parts supplier it owned.

Expected Major Events for Thursday

01:00/AUS: Jun Consumer Inflationary Expectations Survey

08:30/HK: 1Q Quarterly Index of Industrial Production & Quarterly Producer Price Indices for Manufacturing Industries

09:59/CHN: May Broad Money M2

22:30/NZ: May BNZ - BusinessNZ Performance of Manufacturing Index $(PMI.UK)$

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(END) Dow Jones Newswires

June 11, 2025 17:01 ET (21:01 GMT)

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