United States benchmarks closed higher on Tuesday (Wednesday AEST), with investors optimistic about the prospects of easing tariffs as trade negotiations between the United States and China continue.
The Dow Jones Industrial Average rose 105.1 points or 0.3% to close at 42,866.9. The S&P 500 climbed 32.9 points or 0.6% to finish at 6,038.8, while the Nasdaq Composite gained 123.8 points or 0.6%, ending the day at 19,715.0.
Investors closely watched developments in the U.S.-China trade talks, which continued in London following two full days of discussions. U.S. Treasury Secretary Scott Bessent said Tuesday he was leaving the talks to return to Washington, D.C., where he is scheduled to testify before Congress.
However, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer remained in London to continue negotiations with their Chinese counterparts.
Lutnick told reporters the parties were “trying to finish” by Tuesday evening and added, “I think the talks are going really really well. We’re very much spending time and effort and energy - everybody’s got their head down working closely.”
Bessent described the meetings as “productive” as he departed Lancaster House, the historic venue for discussions near Buckingham Palace. He added that the remaining U.S. officials “are continuing as needed with the Chinese delegation”.
In corporate news, J.M. Smucker fell 15.6% after the company reported fiscal fourth-quarter revenue of US$2.1 billion, below market expectations of $2.18 billion, while forward guidance also fell short of forecasts.
Taiwan Semiconductor's U.S.-listed shares gained 2.6% after reporting a 39.6% year-over-year revenue increase in May. Revenue for the first five months of this year was up 42.6% compared with the same period last year.
Casey’s General Stores surged more than 11% after posting fiscal fourth-quarter earnings per share (EPS) of $2.63 on $3.99 billion in revenue. Markets expected $1.94 per share and $3.93 billion in revenue. The company also announced a 14% dividend increase.
In contrast, Calavo Growers tumbled 16.6% after the avocado distributor posted EPS of $0.40 on $190.5 million in revenue, missing expectations of $0.53 and $192.8 million, respectively.
On the bond markets, 10-year yields stood at 4.474%, while 2-year yields were at 4.024%.
