US open: Mixed open on Wall Street as limited details emerge from Trump's Singapore summit
Trading on Wall Street opened on a mixed note on Tuesday as investors were left disappointed by the lack of detail in the North Korean-US agreement.
As of 1530 BST, the Dow Jones Industrial Average was down 0.10% to 25,296.97, while the S&P 500 ticked up 0.04% to 2,783.10 and the Nasdaq collected 0.16% to 7,627.37.
Connor Campbell, a financial analyst at SpreadEx, said, "The Dow Jones and dollar were both pretty quiet after the bell, a tad surprising given a 6 year high inflation reading – 2.8% per annum in May – and the success/disappointment of the US-North Korea summit. The index dipped 0.1%, just about ducking under 25300, with the greenback flat against the euro but up 0.1% against the pound and 0.2% against the yen."
"If things were downbeat today then they may be downright boring tomorrow, a day of trading caught in the shadow of Wednesday evening's Fed meeting," he added.
Donald Trump and Kim Jong-un signed a document confirming that North Korea will begin dismantling its nuclear capabilities "very quickly", the US president said at a ceremony that followed a morning of negotiations. Kim said "we are leaving the past behind us" as he said "the world will see a major change".
Although Trump described the declaration as "very important" and "pretty comprehensive", analysts highlighted the lack of detail in terms of timing or checks on whether North Korea is making changes to its nuclear program.
Craig Erlam, chief market analyst at Oanda, said: "The Singapore summit with US President Donald Trump and North Korean leader Kim Jong-un went very smoothly and provided some optimism that a long-term peaceful solution can be found between the two countries."
"The lack of a response though may be a reflection of the fact that the agreement still lacks some detail and given the unpredictable and volatile nature of the two leaders, there's no guarantee that it won't run into significant difficulties. Still, progress is important which makes today a big success," Erlam added.
In economic news, the cost of living in the US hit a six-year high last month, pushed higher by big jumps in the prices of gasoline and medical care commodities.
The US consumer price index advanced at a 0.2% month-on-month pace in May, according to the Bureau of Labor Statistics.
In comparison to a year ago, the so-called headline rate of CPI was up by 2.8%, following a reading of 2.5% for April compared to economists' forecasts of an increase of 0.2% on the month and 2.7% on the year.
The Fed's two-day policy meeting kicks off later on Tuesday, with markets expecting an interest rate hike for the second time this year.
There was some good news on the data front, as small business sentiment in the US improved more than expected in May, to the second-highest level in the National Federation of Independent Business survey's 45-year history.
The small business optimism index ticked up to 107.8 from 104.8 the month before, beating expectations for a reading of 105.2. Small businesses reported high numbers in several key areas including compensation, profits, and sales trends.
NFIB president and chief executive officer Juanita Duggan said: "Main Street optimism is on a stratospheric trajectory thanks to recent tax cuts and regulatory changes. For years, owners have continuously signalled that when taxes and regulations ease, earnings and employee compensation increase."
In corporate news, McDonald's gained 0.11% in early trade as it's expected to detail changes to its organisation structure in the US later in the day.
Elsewhere, AT&T ticked ahead 0.22% ahead of a ruling on its proposed $85bn acquisition of Time Warner - down 0.98%.