Stock Market Today: Market rises on China talks

Stephen Guilfoyle

Thu, Jun 5, 2025, 9:04 AM 11 min read

Stock Market Today: Market rises on China talks originally appeared on TheStreet.

Updated: 11:41 a.m. ET. 

Stocks reversed early losses after President Donald Trump and Chinese President Xi Jinping spoke for more than 90 minutes Thursday morning and agreed to a high-level meeting on trade disputes in the near future.

The Standard & Poor's 500 Index was up 0.4% to 5,995. The Nasdaq Composite Index had risen 0.7% to 19,592. The Dow Jones Industrial Average was sporting a 0.3% gain to 42,561.

The call also touched on Chinese reluctance to approve export licenses on rare earth minerals, critical components used in the manufacture of electric vehicles. No resolution was announced, however.

Auto makers have been struggling to obtain enough of materials to make high-end magnets and have feared having to shut down assembly lines with the materials, especially dysprosium and terbium.

Trump said the call came to "a positive conclusion." A week ago, the administration had charged China with stalling on trade talks.

Trump named Treasury Secretary Scott Bessent, Commerce Secretary Howard Ludnick and Trade Representative Jamieson Greer to meet with Chinese counterparts to try to resolve problems.

No date was set.

Tesla  (TSLA)  shares were down 3.2% to $321.11; they had been down as much as5%. Costco Wholesale  (COST)  slipped 2.6% to $1,025 on signs sales growth was easing.

Crude oil was higher to $63.44. Gold was off slightly. The 10-year Treasury yield had moved up to 4.395%.

Updated: 10:06 a.m.

The Standard & Poor's 500 Index was off 0.2% to 5,958. The Nasdaq Composite Index was off 0.1% to 19436. The Dow Jones Industrial Average was off 0.4%, or 159 points, to 42,283.

Tesla shares were off, possibly in reaction to CEO Elon Musk's criticisms of the new tax bill.

The market had little reaction to a report that President Donald Trump had had a phone call with Chinese Xi Jinping. The Chinese government reported the call, and few details were available.

Futures trading suggested stocks will open modestly higher. The Standard & Poor's 500 Index was looking at a 14-point gain. The Nasdaq-100 Index was signaling a 48-point jump. The Dow Jones Industrial Average was surging to a possible 100-point jump at the open.

Meanwhile, the U.S. trade deficit shrank  to $61.6 billion in April, an steeper move than Wall Street had forecast. It had ballooned to a record in March as businesses rushed to stockpile ahead of President Donald Trump's tariff plans.