[New York Stock Market] Rises on Optimism Over "Smooth Negotiations" in U.S.-China Talks... Tesla Soars 5.7%

US and China Hold Trade Talks in London... S&P Rises for Third Straight Day
US Commerce Secretary: "Negotiations Going Very Well... Working Closely Together"
Tesla Surges Over 5% as Musk-Trump Tensions Ease
Focus on CPI Release on the 11th and PPI on the 12th

All three major U.S. stock indexes closed higher on June 10 (local time) in New York. Optimism surrounding the second round of high-level trade talks between the United States and China, being held in London, lifted the markets, with the S&P 500 index rising for the third consecutive session. Tesla surged nearly 6% as tensions between CEO Elon Musk and U.S. President Donald Trump appeared to ease.

Reuters Yonhap News

On this day at the New York Stock Exchange, the blue-chip Dow Jones Industrial Average ended the session up 105.11 points (0.25%) at 42,866.87. The large-cap S&P 500 index rose 32.93 points (0.55%) to close at 6,038.81, while the tech-heavy Nasdaq index gained 123.75 points (0.63%) to finish at 19,714.99.

Market participants focused on the ongoing U.S.-China trade talks in London, now in their second day. U.S. Secretary of Commerce Howard Lutnick told reporters, "I really, really think the negotiations are going well. We are putting in a tremendous amount of time, effort, and energy. Everyone is keeping their heads down and working closely together." He added that he hoped the negotiations would be concluded by the end of the night, but if necessary, they could continue into the following day.

This round of talks follows the first meeting held last month in Geneva, Switzerland. While both countries agreed to lower tariffs on each other's goods by 115 percentage points in Geneva, the current talks are focusing on export control issues. The addition of Secretary Lutnick, who oversees U.S. export control policy, to the second round of negotiations is seen as a reflection of this focus. Kevin Hassett, Chairman of the White House National Economic Council (NEC), said in an interview with CNBC the previous day, "U.S. export restrictions will be eased, and China will release a large volume of rare earths." The Financial Times (FT) reported that if China increases its exports of rare earths to the U.S., the U.S. may ease its restrictions on semiconductor sales to China.

Optimism is rising in the market over the prospect of eased U.S.-China trade tensions. Adam Parker, founder of Trivariate Research, commented, "Most people believe that dialogue is better than no dialogue, and we think we are seeing progress in the trade negotiations. Investors do not want to sell stocks."

Jay Woods, Chief Global Strategist at Freedom Capital Markets, analyzed, "Technically, stock prices broke through key levels and gained momentum, but have now returned to a more normal trajectory. This rally is showing a similar pattern to other tech stocks that are attempting to recover previous highs."

Investors are closely watching the Consumer Price Index (CPI) for May, set to be released the following day, to assess the inflationary impact of tariffs. Last month's CPI is expected to have risen 2.5% year-on-year, up from April's 2.3%. The Producer Price Index (PPI), often referred to as 'wholesale prices,' will be released a day later on June 12. The May PPI is projected to have increased by 0.2% month-on-month, reversing from a 0.5% decline in April. The PPI typically affects the CPI, or 'retail prices,' with a time lag. On June 13, the University of Michigan Consumer Sentiment Index and inflation expectations will be released.

Mark Malek, Chief Investment Officer (CIO) at Siebert Financial, said, "The situation is not entirely clear, but there are tariffs that can be implemented. The Federal Reserve is concerned that the real inflationary effects have not yet materialized."

U.S. Treasury yields were mixed within a narrow range. The yield on the benchmark 10-year Treasury note fell 1 basis point (1bp=0.01 percentage point) from the previous session to 4.47%, while the yield on the 2-year Treasury note, which is sensitive to monetary policy, rose 1 basis point to 4.01%.

By stock, food company JM Smucker plunged 15.59% after its earnings outlook for the upcoming fiscal year fell short of market expectations, triggering heavy selling. Taiwan's TSMC climbed 2.64% after announcing a 40% surge in May sales. Tesla soared 5.67% on expectations of reconciliation between CEO Musk and President Trump, who had previously declared a split. Earlier, CEO Musk expressed support for President Trump's hardline response to an immigrant protest in Los Angeles (LA) and deleted past posts criticizing President Trump from his social media platform X (formerly Twitter).