The U.S. stock market wavered Thursday, retreating after earlier gains, as mixed signals on trade policy sparked investor unease. Traders digested a series of conflicting statements from the White House, particularly regarding China and international tariffs.
Futures tied to major indexes dipped early in the day. Dow Jones futures slipped 0.6%, while S&P 500 futures lost 0.5%. Nasdaq futures, driven by tech sentiment, also dropped 0.7%. Clearly, investor confidence in a stable trade outlook remains fragile.
A brief rally on Wednesday was fueled by reports that the Trump administration might reduce tariffs on China. Investors welcomed the news, especially as it echoed Trump’s recent optimism on securing a trade agreement. Trade tensions shake markets, became a familiar refrain as headlines shifted rapidly.
However, that optimism faded quickly. Treasury Secretary Scott Bessent contradicted the report, stating no offer had been made to reduce tariffs unilaterally. As a result, markets reversed course, with investors questioning the administration’s direction.
Adding to the confusion, Trump addressed auto tariffs from the Oval Office. He suggested tariffs on Canadian car imports could rise to 25%. Simultaneously, the administration was reportedly considering exemptions for certain automakers. Meanwhile, the White House launched a probe into truck imports, hinting at further trade barriers ahead.
Corporate news did little to support sentiment. IBM shares plunged 7% after announcing 15 government contracts were affected by cost cuts. Chipotle also disappointed investors, as its earnings missed estimates and it lowered its 2025 forecast.
As markets remained volatile, investor focus turned to earnings reports. Alphabet was set to release its quarterly results after the bell. Although tariffs haven’t hit the tech giant directly, investors remained cautious. They feared future trade policy could hurt growth.
Intel was also in the spotlight, preparing to report its first earnings under CEO Lip-Bu Tan. Many on Wall Street were watching closely, especially as trade tensions shake markets yet again.
Clearly, trade tensions shake markets in unpredictable ways, and investors remain alert to every new development.
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