The U.S. markets posted slight gains on Monday ahead of the Trump-Kim summit in Singapore. On Tuesday, the Federal Reserve kicked off its two-day meeting on monetary policy. Indices closed mixed with the Dow ending fractionally in the red while the S&P 500 and NASDAQ Composite stepped up. The mixed results followed the summit between President Donald Trump and North Korean leader Kim Jong Un. On another note, consumer prices ticked up slightly in May, as the Consumer Price Index rose by 0.2%, as anticipated. The CPI has climbed 2.7% over the past year, marking the fastest pace since early 2012. Indices ended trading in the red zone on Wednesday amid the approval of the AT&T-Time Warner acquisition. The decision affected brands such as CVS, who tacked on more than 3%, and may clear the way for the $69 billion CVS and Aetna acquisition. As expected, the Federal Reserve raised the target range for the federal funds rate 25 basis points to 1.75%-2.00%. Additionally, the Producer Price Index rose 0.5% in May, exceeding estimates. Indices ended the trading session mixed on Thursday, as the Dow closed fractionally lower while the S&P 500 and NASDAQ added some points. The utilities sector led gains on the S&P 500. Initial jobless claims decreased last week, when the Department of Labor showed first-time claims for unemployment insurance benefits fell from 222,000 to 218,000. On another note, retail sales ticked up in May. Sales rose 0.8%, following gains of 0.4% and 0.7% in the prior two months. Gains achieved earlier in the week were given back on Friday as investors appeared to react to China’s retaliatory tariffs on American exports. The deteriorating relationship between the United States and China escalated as the Trump administration revealed plans to impose tariffs of 25% on a significant number of Chinese imports. In response, China targeted U.S. exports, including cars and crude oil, for similar tariffs. By the end of the week, the Dow fell the most, suffering through its largest one-week loss since March.
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