U.S. Stocks Rise Modestly on Cooling Inflation, Trade Deal Reports

U.S. stocks rose to three-month highs amid easing inflation concerns and progress in U.S.-China trade negotiations, despite lingering uncertainties. The Dow Jones, S&P 500, and Nasdaq all posted gains following reports that producer prices increased less than expected in May, signaling modest inflationary pressures. Consumer price data similarly showed a slight uptick below expectations, providing the Federal Reserve room to maintain its current policy stance. President Donald Trump indicated plans to send letters to other trade partners regarding tariffs and expressed willingness to extend the 90-day pause on some tariffs with China. U.S. and Chinese officials announced a framework agreement to ease trade disputes, pending approval by Trump and Xi Jinping, which helped boost market sentiment. Investors remain cautious due to mixed labor market signals and ongoing trade tensions, but the combination of softer inflation data and trade progress underpinned the market rally.