The Dow Jones Industrial Average finished lower for a second day in a row as investors digested a reading on May consumer inflation and continued to eye the U.S.-China trade fight.
How did benchmarks perform?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.29% ended down 43.68 points, or 0.2%, at 26,004.83, marking its first back-to-back loss this month, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.11% lost 5.88 points, or 0.2%, to finish at 2,879.84. The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +1.14% fell 29.85 points, or 0.4%, to 7,792.72.
The Dow is on pace for a slight weekly gain of 0.1%, the S&P 500 is on track for a 0.2% rise, and the Nasdaq is looking at a 0.7% weekly climb.
What drove the market?
Tariffs remain the focus for Wall Street. Responding to reporter questions in the Rose Garden on Wednesday President Donald Trump said he didn’t have a deadline for imposing additional tariffs on Chinese. “My deadline is all up here,” he said, pointing to his head.
On Tuesday, Trump said he was the one “holding up” a trade deal with China, saying the two countries would “either do a great deal…or we’re not doing a deal at all.”
Analysts blamed the remarks for casting a somewhat negative tone over global equities.
Data early Wednesday showed that U.S. price inflation remains tame, according to the Labor Department’s consumer-price index, which indicated that prices rising 0.1% in April, in line with the consensus forecast, according to a MarketWatch poll of economists.
The increase in the cost of living over the past 12 months also slowed to 1.8% from 2%. When eliminating volatile food and energy prices, inflation fell from 2.1% annually to 2%.
Though the measure isn’t as closely followed by the Federal Reserve as the personal-consumption expenditures index, this latest evidence that price growth is slowing could support investors belief that the Federal Reserve will cut interest rates sooner than later.
What companies were in focus?
Shares of electric car maker Tesla Inc . /zigman2/quotes/203558040/composite TSLA +1.10% fell 3.6%, shedding an earlier gain scored after Chief Executive Elon Musk late Tuesday took the stage at the company’s shareholder meeting and denied the company was facing demand and production problems.
In deal news, France’s Dassault Systems SE /zigman2/quotes/204763741/delayed DE:DSY 0.00% said it reached an agreement to acquire U.S. technology group Medidata Solutions Inc. in an agreement valued at $5.8 billion. Dassault will offer $92.25 a share for Medidata in an all-cash deal. Medidata shares fell 3.6% Wednesday at $90.75 a share.