Monday Afternoon Coffee - Markets Update - 09 June 2025 - Markets Climb as U.S.-China Trade Talks Begin; Dollar Slips Ahead of Fed Decision

The Trade Academy Team
Jun 9
3 min read

Markets Update: U.S. stocks bounced back Monday after early losses, as investors brushed off fresh tariff threats from President Donald Trump and focused on broader signs of resilience in the economy. Gold surged above $3,370, while oil rallied sharply on supply concerns out of Canada.

Global Markets Roundup: 9 Jun 2025

U.S. stocks edged higher Monday as investors welcomed the start of high-level trade negotiations between Washington and Beijing, while the dollar dipped and Treasury yields softened amid caution ahead of upcoming inflation data.

Markets reacted positively to the launch of U.S.-China talks in London, aimed at easing a widening trade conflict that now includes rare earth export controls. Optimism over a possible resolution helped global equities advance, even as concerns lingered about long-term supply chain disruption and slowing growth.

Wall Street Advances as Dow Rebounds from Early Losses

All three major U.S. indexes finished the day in the green, with the Dow bouncing back from earlier declines triggered by weakness in Travelers and McDonald’s. The latter slipped after Morgan Stanley downgraded the fast-food giant to “equal-weight.”

Dow Jones Industrial Average: +99.41 points (+0.23%) to 42,862.26
S&P 500: +18.48 points (+0.31%) to 6,018.84
Nasdaq Composite: +88.71 points (+0.46%) to 19,618.93

Global equities also found support, with MSCI’s All-Country World Index gaining for the second straight session:

MSCI ACWI: +3.37 points (+0.38%) to 895.33

European stocks lagged, however, with the STOXX 600 snapping a four-session winning streak, closing down 0.07%.

Dollar Dips, Treasury Yields Ease

The U.S. dollar weakened slightly against major currencies, as cautious sentiment ahead of the trade talks offset gains from Friday’s better-than-expected jobs report.

Dollar Index DXY: -0.14% to 98.97
Euro EURUSD: +0.24% to $1.1421

Meanwhile, benchmark Treasury yields declined, reversing some of Friday’s post-payroll surge. The yield on the 10-year note slipped:

10-Year Treasury Yield: -3.4 basis points to 4.476%

Traders are also looking ahead to Wednesday’s inflation release, which could shape expectations for future Federal Reserve action. Analysts at Morgan Stanley forecast strong core inflation prints starting in May, peaking in Q3 due to tariff effects.

The market now assigns a 59% probability to at least a 25 basis-point rate cut at the Fed’s September meeting, according to LSEG data. Fed officials remain in a blackout period ahead of their June 18 policy decision.

Oil Gains on Trade Optimism

Crude prices climbed on hopes that a trade agreement could boost global demand.

WTI Crude (CL1!): +0.51% to $64.92/barrel
Brent Crude (BRN1!): +0.41% to $66.74/barrel

Outlook

Investors will be closely monitoring developments from the London trade talks, led by U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. China’s delegation is headed by Vice Premier He Lifeng.

In the background, U.S. wholesale inventory data for April showed a buildup in prescription drugs—signaling businesses are preparing for potential new tariffs. All eyes now turn to Wednesday’s inflation report for further clues on Fed policy direction.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team