By STAN CHOE, Associated Press Business Writer

NEW YORK (AP) — U.S. stocks remain in limbo on Tuesday as the wait continues to hear what will come of trade talks underway between the United States and China.

The S&P 500 was edging up by 0.1% in early trading as talks between the world’s two largest economies carried into a second day. The Dow Jones Industrial Average was up 25 points, or 0.1%, as of 9:32 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.

Stocks have largely roared higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of stiff, wide-ranging tariffs. Much of the rally was due to hopes that Trump would lower his tariffs after reaching trade deals with countries around the world, and the S&P 500 is back within 2.2% of its all-time high, which was set in February.

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It’s getting to be time to see whether such hopes were warranted. The talks with China, which are likely covering a range of disagreements between the two countries, were “going well,” U.S. Commerce Secretary Howard Lutnick said as he arrived Tuesday morning. He expected them to continue all day in London.

Both the United States and China have put many of their tariffs announced against each other on pause as talks continue.

Even though many tariffs are on hold for the moment, they’re still affecting companies and their ability to make profits because of all the uncertainty they’ve created.

Designer Brands, the company behind the DSW shoe stores, became the latest U.S. company to yank its financial forecasts for 2025 because of “uncertainty stemming primarily from global trade policies.”

The company, which also owns the Keds, Jessica Simpson and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short. CEO Doug Howe pointed to ”persistent instability and pressure on consumer discretionary” spending, and the company’s stock tumbled 18.2%.

The uncertainty is moving in both directions, to be sure. A survey released Tuesday of optimism among small U.S. businesses improved a bit in May, for example.

“While the economy will continue to stumble along until the major sources of uncertainty are resolved, owners reported more positive expectations on business conditions and sales growth,” according to Bill Dunkelberg, chief economist at the National Federation of Independent Business.

On Wall Street, J.M. Smucker fell 6.2% even though its results for the latest quarter topped analysts’ expectations. Its revenue fell short of expectations, as did its forecast for profit in the upcoming year.

Tesla helped to offset such losses after rising 1.8%. The electric vehicle company has been recovering a bit since tumbling last week as Elon Musk’s relationship with Trump imploded.

Shares of chipmaking giant Taiwan Semiconductor Manufacturing Co. that trade in the United States rose 2.2% after the company known as TSMC said its revenue jumped in May nearly 40% from the year earlier.

Casey’s General Stores jumped 10.8% after the chain of convenience stores based in Ankeny, Iowa, reported a stronger profit for the latest quarter than analysts expected. It credited strength in sales of hot sandwiches and other items.

In stock markets abroad, indexes were mixed amid mostly modest movements across Europe and Asia.

In the bond market, the yield on the 10-year Treasury eased to 4.44% from 4.49% late Monday.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

By PHILIPP JENNE, Associated press

GRAZ, Austria (AP) — A former student opened fire at a school in Austria’s second-biggest city on Tuesday, killing nine people and wounding at least 12 others before taking his own life, authorities said.

There was no immediate information on the motive of the 21-year-old man, who wasn’t previously known to police. He had two weapons, which he appeared to have owned legally, police said.

Special forces were among those sent to the BORG Dreierschützengasse high school, over half a mile from Graz’s historic center, after a call at 10 a.m. At 11.30 a.m., police wrote on social network X that the school had been evacuated and everyone had been taken to a safe meeting point.

Police said they didn’t immediately have information on the man’s motive, but said that he killed himself in a toilet after fatally shooting nine people.

The shooter was a former student at the school who didn’t finish his studies, Austrian Interior Minister Gerhard Karner said at a press conference in Graz.

Austrian Chancellor Christian Stocker said there would be three days of national mourning, with the Austrian flag lowered to half-staff and a national minute of mourning at 10 a.m. Wednesday. He said that it was “a dark day in the history of our country.”

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Photos from the scene showed a large police deployment, including at least one helicopter and emergency vehicles around the school.

President Alexander Van der Bellen said that “this horror cannot be captured in words.”

“These were young people who had their whole lives ahead of them. A teacher who accompanied them on their way,” he said.

“Schools are symbols for youth, hope and the future,” European Commission President Ursula von der Leyen wrote on X. “It is hard to bear when schools become places of death and violence.”

Graz, Austria’s second-biggest city, is located in the southeast of the country and has about 300,000 inhabitants.

By VASILISA STEPANENKO and SAMYA KULLAB, Associated Press

KYIV, Ukraine (AP) — Russia attacked two Ukrainian cities with waves of drones and missiles early Tuesday, killing three people and wounding at least 13 in what President Volodymyr Zelenskyy called “one of the biggest” strikes in the 3-year-old war.

The attack struck Kyiv and the southern port city of Odesa. In an online statement, Zelenskyy said that Moscow’s forces fired over 315 drones, most of them Shaheds, and seven missiles overnight.

“Russian missile and Shahed strikes are louder than the efforts of the United States and others around the world to force Russia into peace,” Zelenskyy wrote, urging “concrete action” from the U.S. and Europe in response to the attack.

A maternity hospital and residential buildings in the southern port of Odesa were damaged in the attack, regional head Oleh Kiper said. Two people were killed and nine injured, according to the regional prosecutor’s office.

Another person was killed in Kyiv’s Obolonskyi district, regional head Tymur Tkachenko wrote on Telegram.

“Russian strikes are once again hitting not military targets but the lives of ordinary people. This once again shows the true nature of what we are dealing with,” he said.

Explosions and the buzzing of drones were heard around the city for hours.

Attacks continue despite talks but POWs swapped

The fresh attacks came a day after Moscow launched almost 500 drones at Ukraine in the biggest overnight drone bombardment of the war. Ukrainian and Western officials have been anticipating Moscow’s response to Kyiv’s audacious June 1 drone attack on distant Russian air bases.

Russia has been launching a record number of drones and missiles in recent days, despite both sides trading memoranda at direct peace talks in Istanbul on June 2 that set out conditions for a potential ceasefire. However, the inclusion of clauses that both sides see as nonstarters make any quick deal unlikely, and a ceasefire, long sought by Kyiv, remains elusive.

Residents react near their damaged multi-storey building damaged in Russia’s missile and drone attack in Kyiv, Ukraine, Tuesday, June 10, 2025. (AP Photo/Efrem Lukatsky)

The only tangible outcome of the talks has been the exchange of prisoners of war, with a swap that began Monday for soldiers aged between 18 and 25.

Amina Ivanchenko was reunited Monday with her husband, a POW for 18 months, and she was grateful to Ukrainian officials for supporting her.

“My struggle was much easier thanks to them. Our country will definitely return everyone. Glory to Ukraine! Thank you!”

Anastasia Nahorna waited in the Chernyhiv region to see if her husband, who has been missing for eight months, was among those being released in the latest swap.

“This pain is more unbearable every day,” she said. “I really want to hear some news, because since the moment of his disappearance, unfortunately, there has been no information. Is he alive? or maybe in captivity? Has someone seen him?” she asked.

Anna Rodionova, the wife of another Ukrainian POW, also was waiting.

“I just want him to come back soon and for this to all be over,” she said. “We are tired of waiting, we come every exchange and he is not there.”

A similar exchange was announced for the bodies of fallen soldiers held by both sides, although no schedule has been released. Asked to comment on the exchange of dead, Kremlin spokesman Dmitry Peskov said it was unclear when it could take place and how many bodies Ukraine would hand over. He again accused Kyiv of dragging its feet on the exchange.

“There is one unarguable fact, we have had trucks with bodies standing ready for it on the border for several days,” he told reporters.

Kyiv residents seek shelter

Plumes of smoke rose in Kyiv as air defense forces worked to shoot down drones and missiles Tuesday.

Viktoriia Melnyk, 30, vented her anger at the Russians after her building in the Obolonskyi district was struck by a drone.

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“I want them to leave our territory, to leave us alone, to leave our families alone,” she said. “Small children are dying. This is not normal. It’s not normal that (the world) is turning away. This is not normal for the 21st century.”

Mariia Pachapynska, the 26-year-old manager at a T-shirt company in the Obolonskiy district that produces T-shirts, decried that her facility was struck.

“There were military facilities here,” she said, noting that “everything and half of me, half of my soul, burned down.”

Seven out of 10 districts were damaged in the attack, according to Maryna Kotsupii of the State Emergency Service of Ukraine, adding that 16-story and 25-story residential buildings were hit.

Residents took shelter and slept in metro stations during the long attack, including Nina Nosivets, 32, and her 8-month-old son, Levko.

“I just try not to think about all this, silently curled up like a mouse, wait until it all passes, the attacks. Distract the child somehow because it’s probably the hardest thing for him to bear,” she said.

Krystyna Semak, 37, said she was scared by the explosions and ran to the metro at 2 a.m., carrying a rug.

Fires broke out in at least four Kyiv districts after debris from downed drones fell onto residential buildings and warehouses, according to the Kyiv City Military Administration.

“I was lying in bed, as always hoping that these Shaheds would fly past me, and I heard that Shahed (that hit the house),” said Vasyl Pesenko, 25, standing in his damaged kitchen. “I thought that it would fly away, but it flew closer and closer and everything blew away.”

The attack sparked 19 fires across Ukraine, Interior Minister Ihor Klymenko wrote on Telegram. “Russia must answer for every crime it commits. Until there is justice, there will be no security. For Ukraine. And for the world,” he said.

Death toll rises from recent attacks

The Russian Defense Ministry said an attack early Tuesday targeted arms plants in Kyiv, as well as military headquarters, troop locations, air bases and arms depots across Ukraine. “The goals of the strikes have been achieved, all the designated targets have been hit,” it said in a statement.

The death toll rose Tuesday from previous Russian strikes. In Kharkiv, rescuers found a body in the rubble of a building that was hit Saturday, Mayor Ihor Terekhov wrote on Telegram. The discovery brought the number of dead there to five, with five others potentially under the debris, Terekhov said.

In the northern city of Sumy, a 17-year-old boy died of his injuries Tuesday after a June 3 attack, acting Mayor Artem Kobzar wrote on Telegram, bringing the number killed to six.

Airports close amid strikes on Russia

The Russian Defense Ministry reported downing 102 Ukrainian drones over Russian regions and Crimea, the Black Sea peninsula Moscow illegally annexed from Kyiv in 2014.

The drones were downed both over regions on the border and deeper inside Russia, including central Moscow and Leningrad regions, according to the Defense Ministry. Flights were temporarily restricted at multiple Russian airports, including all four in Moscow and the Pulkovo airport in St. Petersburg, the country’s second-largest city.

AP journalist Illia Novikov contributed.

By LOLITA C. BALDOR and TARA COPP, Associated Press

WASHINGTON (AP) — Defense Secretary Pete Hegseth is expected to field sharp questions from members of Congress about his tumultuous start as Pentagon chief, including his sharing of sensitive military details over a Signal chat, in three separate Capitol Hill hearings beginning Tuesday.

Lawmakers also have made it clear they are unhappy that Hegseth has not provided details on the administration’s first proposed defense budget, which President Donald Trump has said would total $1 trillion, a significant increase over the current spending level of more than $800 billion.

It will be lawmakers’ first chance to ask Hegseth about a myriad of other controversial spending by the Pentagon, including plans to spend hundreds of millions of dollars on security upgrades to turn a Qatari jet into Air Force One and to pour as much as $45 million into a parade recently added to the Army’s 250th birthday bash, which happens to coincide with Trump’s birthday on Saturday.

Lawmakers may quiz Hegseth on the latest searing images coming out of the immigration raid protests in Los Angeles. Hegseth has deployed about 700 active-duty Marines to assist more than 4,100 National Guard troops in protecting federal buildings and personnel. But there are questions about what the troops will have to do and how much it will all cost.

Under the Posse Comitatus Act, troops are prohibited from policing U.S. citizens on American soil. Invoking the Insurrection Act, which allows troops to do that, is incredibly rare, and it’s not clear if Trump plans to do it.

The commandant of the Marine Corps, Gen. Eric Smith, will be on Capitol Hill testifying at a separate budget hearing at the same time as Hegseth and is likely to face similar questions.

What Hegseth has focused on so far

Hegseth has spent vast amounts of time during his first five months in office promoting the social changes he’s making at the Pentagon. He’s been far less visible in the administration’s more critical international security crises and negotiations involving Russia, Ukraine, Israel, Gaza and Iran.

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Most recently, Hegseth directed the renaming of a Navy ship that had honored Harvey Milk, a slain gay rights activist who served as a sailor during the Korean War. His spokesman, Sean Parnell, said the renaming was needed to ensure “the names attached to all DOD installations and assets are reflective of the commander-in-chief’s priorities, our nation’s history, and the warrior ethos.”

Hegseth has posted numerous videos of his morning workouts with troops or of himself signing directives to purge diversity and equity programs and online content from the military. He has boasted of removing transgender service members from the force and firing so-called woke generals, many of whom were women.

He was on the international stage about a week ago, addressing an annual national security conference in Asia about threats from China. But a trip to NATO headquarters last week was quick and quiet, and he deliberately skipped a gathering of about 50 allies and partners where they discussed ongoing support for Ukraine.

His use of the Signal messaging app

Hegseth’s hearing Tuesday before the House Appropriations Defense Subcommittee will be his first public appearance on Capitol Hill since he squeaked through his Senate confirmation with a tie-breaking vote. It was the closest vote of any Cabinet member.

While he has talked a lot about making the military more lethal, it was his use of the unclassified, unsecured Signal messaging app that quickly caught public attention.

Set up by then-national security adviser Mike Waltz, a group chat included Hegseth and other senior administration leaders and was used to share information about upcoming military strikes in Yemen.

The chat became a public embarrassment because the editor-in-chief of The Atlantic, Jeffrey Goldberg, was inadvertently added to it. Waltz took responsibility for the gaffe, but Hegseth was roundly criticized for sharing details about the military strikes in this chat and in another one that included his wife and brother.

Multiple investigations are looking into his use of Signal. The Defense Department’s acting inspector general has been looking into the initial chat at the request of the Republican and Democratic leaders of the Senate Armed Services Committee. The Pentagon’s watchdog also is reviewing whether any of Hegseth’s aides were asked to delete any Signal messages.

Controversial Pentagon spending

While any number of those issues could come up at the House Armed Services Committee hearing Thursday, money issues are more likely to be the focus of the hearings Tuesday in the House and Wednesday before the Senate Appropriations Defense Subcommittee.

Already defense leaders have been grilled in other hearings on the plans to retrofit the Qatari jet and the costs of the military parade. Trump has long wanted a parade, and Army leaders defended it as a good way to attract new recruits.

Other questions may involve the costs of expanding the use of military forces to secure the southern border, the plans for the Golden Dome missile defense program, and how the department intends to fund modernization programs for drones and other critical weapons systems.