June 11, 2025

The Pulse: Global Economic and Market News for Wednesday, June 11, 2025

Global Economic and Market News: June 11, 2025

U.S. and global markets traded lower on June 11, 2025, as investors digested a lackluster outcome from U.S.-China trade talks, a cooler-than-expected U.S. inflation report, and persistent geopolitical and policy uncertainties. The S&P 500 and Nasdaq both ended the day in the red, while the Dow Jones Industrial Average closed flat, reflecting a cautious market mood after several days of gains.

U.S.-China Trade Talks Yield Limited Progress

After two days of negotiations in London, U.S. and Chinese officials announced a framework to revive their trade truce and address China’s restrictions on rare earth exports. However, the agreement lacked concrete details and failed to resolve key tariff disputes, leaving investors disappointed and global markets subdued. The potential impact of this on the global economy is significant, as the framework aims to ease reciprocal tariffs and secure access to critical minerals. Market participants remain wary of the absence of a durable solution, which could lead to prolonged trade tensions and further economic uncertainty.

Inflation Rises Less Than Expected

The May Consumer Price Index (CPI) report showed inflation rising 0.1% for the month, with the annual rate ticking up to 2.4%. This was below economists’ forecasts, even as the effects of elevated tariffs began to be felt more broadly across the economy. Core inflation also remained relatively contained. The softer inflation reading calmed some fears about aggressive Federal Reserve action, with traders now assigning a 50% probability to a rate cut in September. Most analysts expect the Fed to hold rates steady at its meeting next week.

Market Performance and Sector Highlights

• The S&P 500 and Nasdaq closed lower, snapping a three-day winning streak, while the Dow ended the day flat.

• Tesla shares rose after CEO Elon Musk expressed regret over recent remarks about President Trump, signaling a potential thaw in their public feud. Tesla also announced a timeline for its anticipated Robotaxi launch.

• GitLab shares fell sharply after disappointing quarterly results, and GameStop stock dropped following a decline in first-quarter revenue.

• Treasury yields and gold prices edged higher, while Bitcoin remained little changed.

Global Economic Outlook and Policy Risks

The World Bank this week reduced its 2025 global growth forecast to 2.3%, citing higher tariffs and persistent uncertainty as “significant headwinds” for nearly 70% of economies, including the U.S., China, and the European Union. This revision is a significant indicator of the current economic situation, warning that global growth is on track for its slowest decade since the 1960s, with trade tensions and fiscal imbalances posing ongoing risks.

In the U.S., consumer spending and hiring remain resilient. Still, economists project a slowdown in domestic demand in the second half of the year as the effects of tariffs and policy uncertainty weigh on activity.

Other Developments

Protests against President Trump’s immigration policies were anticipated in several U.S. cities, adding to the political uncertainty. The potential impact of these protests on the U.S. economy is significant, as they could lead to further policy uncertainty and potentially affect consumer and investor confidence.

• In Europe, Italy’s bond market staged a notable rebound, challenging its reputation as a weak link in the eurozone’s fiscal landscape.

• The U.S. and Mexico are reportedly in talks to reduce or eliminate tariffs on steel imports, supporting the Mexican peso’s recent gains.

Disclosure

This article is for informational purposes only and does not constitute investment advice, an offer to sell, or a solicitation to buy any securities. All information is based on publicly available sources as of June 11, 2025. The author holds no positions in the securities mentioned. Readers should consult financial professionals before making investment decisions.

Sources

‍

The Pulse: Global Economic and Market News for Wednesday, June 11, 2025

Recent Articles

Let's talk about your future.