Stocks in the United States experiencing a downturn, prices of oil and gold showing an upward trend.
On Tuesday, August 12, 2025, the U.S.-China trade talks and the extension of the trade truce led to relatively muted reactions in the global markets.
The Dow Jones, S&P 500, and Nasdaq 100 futures remained mostly flat, reflecting investor caution ahead of key U.S. inflation data later in the day. The S&P and Nasdaq notably missed all-time highs and stayed within less than 1% of key levels, while small caps outperformed slightly.
In the global markets, the Euro, Gold, and Oil showed limited volatility or strong directional moves driven by trade developments alone. The European common currency weakened on Tuesday evening, with one euro being worth 1.1551 U.S. dollars. The price of gold increased by 0.4% on Tuesday evening, with an ounce of fine gold costing 3,325 U.S. dollars.
The continuation of the tariff truce helped alleviate immediate fears of an escalating trade war and allowed markets to maintain a cautious but stable stance. However, the underlying trade war issues are expected to persist in the medium term, which may cap stronger market rallies.
Additional factors influencing markets include uncertainty about upcoming U.S. CPI (inflation) data, which investors view as critical for future Fed policy and economic outlook, impacting risk appetite alongside trade developments.
In summary, the U.S.-China trade talks and tariff truce extension on Tuesday kept U.S. equities nearly flat and global markets stable, with investors awaiting key inflation data for further market direction. The oil price increased by 3.7% on Tuesday evening compared to the close of the previous trading day, with a barrel of the North Sea Brent blend costing 72.66 U.S. dollars.
In light of U.S.-China trade talks and the tariff truce extension, the S&P 500 and Nasdaq missed an opportunity to reach all-time highs, as investors maintained a cautious stance due to upcoming U.S. CPI (inflation) data. This economic indicator holds significant importance as it affects future Federal Reserve policy and market direction, potentially impacting the finance sector as well.
