US stocks flat at open: Dow Jones up 30 points, Nasdaq inches up 0.2%

US equities were mostly flat on Wednesday, pausing a recent comeback rally despite softer-than-expected inflation data and signs of progress in trade talks between the US and China.

The Dow Jones Industrial Average slipped 30 points, or 0.1%, while the S&P 500 was virtually unchanged. The Nasdaq Composite rose 0.2%.

The S&P 500 has now gained in six of the past seven sessions and sits less than 2% below its February record high, having rebounded sharply from a 20% decline earlier this year.

Investor sentiment was influenced by the latest round of trade negotiations in London, where US and Chinese officials reached a preliminary agreement.

The tentative framework includes a Chinese commitment to approve rare earth mineral exports and a US move to ease restrictions on advanced technology sales to China.

President Donald Trump confirmed the progress in a Truth Social post, declaring the deal “done, subject to final approval with President Xi and me.”

He noted the agreement includes “a total of 55% tariffs” on Chinese goods, while China will receive a 10% tariff rate in return.

He added that China would immediately supply key rare earth elements, and the US would reinstate student visa access for Chinese nationals.

Trump called the outcome “a great WIN for both countries.”

Markets had already been buoyed by inflation data released earlier in the day showing a smaller-than-expected rise in consumer prices for May.

But with geopolitical uncertainty still hanging over trade policy, investors appeared cautious.

The deal, while encouraging, has yet to be finalized, and market participants remain watchful for signs of a formalized and enforceable agreement between the two largest economies.

US inflation cools in May

Consumer prices in the United States rose less than expected in May, with little sign so far that President Donald Trump’s tariff policies have triggered significant inflationary pressure.

According to data released Wednesday by the Bureau of Labor Statistics, the consumer price index (CPI) increased 0.1% last month, below the 0.2% rise forecast by economists surveyed by Dow Jones.

The annual CPI reading came in at 2.4%, in line with expectations.

Core CPI, which strips out volatile food and energy prices and is closely monitored by the Federal Reserve, also rose 0.1% month-on-month.

On a year-over-year basis, core inflation edged up 2.8%, coming in just under the consensus estimate of 2.9%.

The softer-than-expected print suggests inflation remains contained, offering some relief to markets wary of aggressive monetary tightening.

It also indicates that recent US tariffs have yet to exert significant upward pressure on consumer prices, tempering concerns about a tariff-induced inflation spike.