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US stocks rise amid anticipation of US-China trade talks
US stocks rose on Thursday following new reports on developments in US-China trade relations.
The Standard & Poor's 500 index rose 0.12% to 5,978.28, the Nasdaq Composite index fell 0.28% to 19,511.76, and the Dow Jones Industrial Average was flat at 42,454.72.
Beijing announced on Thursday that US President Donald Trump had a phone call with his Chinese counterpart Xi Jinping, according to the Chinese Foreign Ministry and the Chinese Embassy in the United States.
Washington and Beijing agreed last May to temporarily reduce tariffs, which led to sharp gains in markets that month amid hopes that the worst of the trade tensions was behind them. The S&P 500 rose more than 6% in May, its best monthly performance since November 2023, along with the Nasdaq.
However, the recent escalation of tensions between the two sides has brought volatility back to the markets, as investors await any tangible signs of progress in reaching a trade agreement between the two countries.
Slowing US Labor Market
News of the phone call initially helped boost stocks, especially after the release of new US labor market data on Thursday. Jobless claims rose to 247,000 last week, an increase of 8,000 claims from the previous week and exceeding the Dow Jones estimate of 236,000.
This comes a day after the release of private sector jobs estimates, which showed only 37,000 jobs added in May, significantly below expectations of 110,000, heightening investor concerns about a slowing labor market and its impact on the economy.
This string of labor market data has heightened the importance of Friday's nonfarm payrolls report, which economists surveyed by Dow Jones expect to see 125,000 jobs added in May, a figure that is about 52,000 fewer than the previous month.
