S&P500 and Nasdaq: TSMC Surge Lifts Tech Stocks as US Indices Eye Trade Talks

Trade Talks Drive Market Sentiment as Investors Seek Clarity

U.S. markets held steady on the opening Tuesday as traders focused on ongoing trade negotiations between American and Chinese officials in London. The Dow Jones Industrial Average slipped 11 points while the S&P 500 and Nasdaq Composite each gained roughly 0.2%, reflecting cautious optimism about potential breakthroughs.

Can U.S.-China Trade Talks Deliver Real Progress?

Commerce Secretary Howard Lutnick provided encouraging updates, stating discussions are “going well” and expected to continue throughout the day. The second day of talks builds on last month’s agreement to temporarily reduce tariffs, marking significant progress since President Trump’s broad import levy proposals sparked initial concerns.

Market participants are positioning for a deal that avoids escalating tariff wars between the world’s largest economies. “Most people are assuming that some conversation is better than nothing, that we’re making progress,” noted Adam Parker from Trivariate Research, explaining why investors remain reluctant to sell equities.

TSMC Revenue Surge Highlights Semiconductor Strength

Taiwan Semiconductor Manufacturing emerged as a standout performer, with U.S.-listed shares climbing over 2% following strong revenue data. The chipmaker reported 39.6% year-over-year growth in May revenue, with January-May figures showing 42.6% gains compared to the same period last year. This performance underscores continued demand for advanced semiconductor technology.

Earnings Beat Propels Casey’s General Store

Casey’s General Store jumped more than 10% after delivering impressive fourth-quarter results. The retailer posted earnings of $2.63 per share on $3.99 billion revenue, significantly exceeding analyst expectations of $1.94 per share and $3.93 billion revenue. Management also announced a 14% dividend increase, signaling confidence in future cash flows.

Mixed Signals From Corporate America

Other notable movers included Insmed, which surged 26% on positive Phase 2b study results for its pulmonary arterial hypertension treatment. Conversely, J.M. Smucker fell 8% despite beating earnings expectations, as revenue of $2.14 billion missed the $2.18 billion consensus estimate.

Market Outlook: Trade Progress Key to Sustained Rally

Current market stability hinges on constructive trade dialogue outcomes. With both nations showing willingness to negotiate, reduced tariff tensions could support risk assets. However, concrete agreements remain essential for meaningful upward momentum, making trade developments the primary catalyst for near-term market direction.

More Information in our Economic Calendar.