The S&P/NZX 50 index fell 0.6% to close at 12,856 on Wednesday, snapping a four-day run of gains. Investors turned cautious after US-China trade talks concluded without any major breakthroughs. Although both sides agreed to seek an extension of their 90-day tariff truce, the final decision is up to President Trump. Adding to concerns, New Zealand - currently subject to Trump’s 10% baseline tariffs - could face higher levies of 15% to 20% if a deal isn't reached soon. Meanwhile, expectations that the US Federal Reserve will hold rates steady this week also contributed to the cautious mood. On the domestic front, New Zealand’s business confidence improved further in July, but conditions remain challenging for many firms, with forward-looking activity indicators showing little momentum. In corporate news, Mainfreight was the session’s biggest drag, plunging 9.6% after the logistics company reported a slow and disappointing start to FY2026, with profits down across its three main divisions.