NEW YORK — Stock prices inched higher on Wall Street Tuesday as investors remain on edge while awaiting critical updates regarding U.S.-China trade discussions. A strong emphasis was placed on Apple’s stock, buoyed by excitement surrounding its recent developers’ conference.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all saw modest gains as optimism about a potential thaw in trade relations took hold. Analysts suggest that news from the upcoming talks could significantly influence market trends, with investors keenly watching for signs of progress.

Meanwhile, economic indicators are set to shape market reactions in the coming days, particularly with inflation reports and Treasury auctions on the horizon. Investors will be scrutinizing these data points for hints about the Federal Reserve’s next move regarding interest rates, which remain a critical focus in a fluctuating economy.

As sectors such as technology continue to show resilience, Tesla’s stock notably surged for a third consecutive day, showcasing its potential even amid broader economic uncertainty. Intel also led the S&P 500’s gainers, reflecting a growing confidence in tech stocks despite inflationary fears impacting other segments.

With expectations of new inflation readings, analysts are aware that the bond market may face challenging tests. Future Treasury auctions will be closely watched as they can offer further insights into economic stability and investor confidence.

Financial experts caution that while hopes for trade agreements provide some uplift, underlying challenges persist. A popular Treasury bet may also turn into a problematic trend, according to analysts, highlighting the need for careful navigation within the current investment climate.

As traders keep a wary eye on geopolitical developments and economic indicators, the stock market’s response will likely illustrate broader sentiments about the direction of U.S. economic policy and growth trajectories in the near term.