Until now, the S&P 500's rally since early April was built on the potential for sellers to be caught off guard by surprising trade deals. Since the benchmark index has rallied 21% after Trump paused reciprocal tariffs on April 9,

The S&P 500 posted a 0.27% decline on Wednesday as investors weighed Trump’s scant-on-details trade deal with China as well as an inflation report that outperformed analysts’ expectations. The stock markets dropped on Wednesday despite a seemingly positive development in the trade war between the U.

The U.S. dollar slid on Wednesday after data showed inflation in the world's largest economy rose less than expected last month, suggesting that the Federal Reserve could resume cutting interest rates sooner rather than later.