Wall Street gains ground as China shores up its economy ahead of trade talks with the US

NEW YORK (AP) — Stocks wavered on Wall Street Wednesday as China steps up measures to shore up its economy and gears up for trade talks with the U.S.

The S&P 500 index was mostly unchanged in morning trading Wednesday. The Dow Jones Industrial Average rose 147 points, or 0.4%, as of 11:07 a.m. Eastern. The Nasdaq composite fell 0.3%.

Most stocks in the S&P 500 gained ground, but a drop for technology stocks with outsized values and influence on the market’s direction kept those gains in check. Google fell 3.8% and Apple fell 1.8%.

The Walt Disney Co. soared 10.8% after easily beating analysts’ profit targets, raising its profit forecast and adding more than a million streaming subscribers.

The encouraging update from the entertainment giant comes amid broader worries that tariffs will potentially sap consumer spending and hurt a wide range of companies, especially those focusing on discretionary items such as entertainment and travel.

An unpredictable trade policy by President Donald Trump has prompted many companies to cut or withdraw financial forecasts for the year.

Super Micro Computer, which makes servers, fell 5.3% after trimming its revenue forecast for the year amid economic uncertainty. Chipmaker Marvell Technology slumped 11.2% after it postponed its investor day from June to an undetermined date because of uncertainty over the economy.

Technology companies face an especially difficult situation amid the trade war between the U.S. and China. U.S. tariffs against China are now at 145% and China tariffs on the U.S. are at 125%.

Tensions between the world’s two biggest economies have a chance at easing, though. Top U.S. officials are set to meet with a high-level Chinese delegation this weekend in Switzerland. At the same time, China has plans to cut interest rates and take other measures to help it absorb the economic impact from tariffs.

Wall Street is also looking ahead to the latest update on interest rates and policy from the Federal Reserve. The central bank is expected to hold its benchmark interest rate steady. Chair Jerome Powell and other Fed officials have signaled that they want to see how tariffs impact consumer prices and the economy.

The Fed cut rates three times in 2024 after the rate of inflation moved closer to the central bank’s target of 2%. It turned more cautious as inflation continued to hover just above that target while a trade war raised concerns that inflation could reignite. Worries over tariffs and the economy have already raised some caution flags for the economy.

The U.S. trade deficit soared to a record $140.5 billion in March as consumers and businesses tried to get ahead of tariffs that went into effect in April and others that have been postponed until July. The U.S. economy shrank at a 0.3% annual pace during the first quarter as imports surged. Consumer confidence has been slipping.

Employment in the U.S., which the Fed also watches closely, remains resilient. The latest updates there don’t include the full effect of additional tariffs that have been postponed until July.

Treasury yields held relatively steady. The yield on the 10-year Treasury fell to 4.28% from 4.30% late Tuesday.

Markets in Europe mostly lost ground, while markets in Asia rose.

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AP business writers Elaine Kurtenbach and Matt Ott contributed to this report.