US stocks edge higher, Treasury yields dip as investors eye tariff talks, jobs data

Wall Street moved higher and U.S. Treasury yields dropped on Wednesday as investors monitored U.S. trade negotiations and looked ahead to Friday's critical employment report.

All three major U.S. stock indexes were modestly higher in sympathy with their European counterparts, while the dollar dipped and gold was essentially unchanged.

"The big move in rates is providing a little bit of reprieve if not for stocks directly, at least for some of the bigger narratives around why rates were moving higher," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "There's a bit of relief from the equity markets that there still seems to be an upper range on where rates will go in this kind of environment."

U.S.-European trade talks are progressing, Europe's top negotiator said, noting that the doubling of U.S. metals tariffs, which kicked in on Wednesday, is not helping negotiations. China's curbs on critical mineral exports have distressed global automakers, who warn shortages threaten to halt global supply chains.

With U.S. President Donald Trump and Chinese President Xi Jinping likely to speak soon, Trump called Xi tough in a social media post and "extremely hard to make a deal with," suggesting a swift resolution of trade differences between the world's two largest economies could prove elusive.

The Dow Jones Industrial Average rose 18.57 points, or 0.04%, to 42,537.23. The S&P 500 advanced 12.69 points, or 0.21%, to 5,982.97 and the Nasdaq Composite climbed 84.52 points, or 0.44%, to 19,483.48.