Wall Street closed mostly flat on Thursday as investors weighed renewed trade dialogue between U.S. President Donald Trump and Chinese President Xi Jinping against a batch of disappointing economic data, just ahead of a closely watched U.S. jobs report due Friday.
Wall Street edged higher on Thursday as investors weighed renewed trade discussions between U.S. President Donald Trump and Chinese President Xi Jinping against a slate of disappointing U.S. economic data ahead of Friday’s pivotal jobs report.
In a volatile session, the S&P 500 and Nasdaq closed slightly lower, while the Dow Jones Industrial Average ended marginally in positive territory. U.S. Treasury yields fluctuated throughout the day, and gold prices softened.
President Trump and President Xi held a phone call on Thursday aimed at easing ongoing trade tensions between the world’s two largest economies. Both sides confirmed that they agreed to continue discussions—a development that helped calm markets.
“The market seems to be accepting that if they’re talking, they’re not going to do anything drastic,” said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta. “People are just sort of guessing which way the wind is blowing—and it keeps shifting. Investors want to own stocks and fear missing out, but they’re also wary of a potential disaster.”
Economic Data Raises Questions Ahead of Jobs Report
Fresh U.S. economic data painted a mixed picture. Initial jobless claims rose to their highest level since October, and the trade deficit narrowed sharply in April due to a 16.3% drop in imports—largely attributed to the impact of U.S. tariffs.
Meanwhile, labor market indicators showed signs of weakness. Challenger layoffs surged 47% year-over-year, and private payrolls from ADP came in well below expectations. These figures have tempered optimism ahead of the Labor Department’s May employment report, due Friday.
Some analysts, however, see a silver lining in the softer data.
“The recent benign inflation figures and rising jobless claims could give the Federal Reserve room to implement more than one rate cut this year,” said Matthew Keator, Managing Partner at the Keator Group in Lenox, Massachusetts. “That could be encouraging for certain sectors.”
Market Recap
Dow Jones Industrial Average rose 62.89 points, or 0.15%, to 42,491.60
S&P 500 fell 3.56 points, or 0.06%, to 5,967.38
Nasdaq Composite declined 40.84 points, or 0.22%, to 19,419.88
ECB Cuts Rates, Hints at Possible Pause
In Europe, the European Central Bank (ECB) lowered its three key interest rates by 25 basis points, citing a more stable inflation outlook. While the decision was widely expected, ECB President Christine Lagarde suggested the bank may pause its rate-cutting cycle during the summer.
European stocks initially gained following the announcement but pared back those gains by the close.
Pan-European STOXX 600 rose 0.16%
FTSEurofirst 300 added 0.19%
MSCI’s global stock index ticked up 0.02% to 889.10
Global Markets Mixed
Emerging markets and Asia-Pacific shares saw modest gains, while Japan’s Nikkei declined.
MSCI Emerging Markets Index rose 0.84% to 1,182.31
Asia-Pacific Index (excluding Japan) climbed 0.82% to 622.95
Japan’s Nikkei fell 0.51% to 37,554.49
Currency and Bond Markets
The dollar reversed earlier gains after weaker U.S. data and the ECB’s dovish tone.
Dollar Index inched up 0.02% to 98.81
Euro gained 0.14% to $1.1433
Dollar/Yen rose 0.67% to 143.73
U.S. Treasury yields fluctuated, reflecting market uncertainty ahead of Friday’s labor market data:
10-year yield rose to 4.395%
30-year yield edged down to 4.8856%
2-year yield climbed to 3.928%, indicating shifting expectations for Fed policy
Oil and Gold
Crude prices rose despite bearish inventory data and Saudi Arabia’s price cuts for Asia, as the Trump-Xi call raised hopes for improved trade ties.
U.S. crude settled up 0.83% at $63.37 per barrel
Brent crude rose 0.74% to $65.34 per barrel
Gold reversed earlier gains as easing trade tensions reduced demand for safe-haven assets:
Spot gold fell 0.65% to $3,353.64 an ounce
U.S. gold futures declined 0.72% to $3,349.20 an ounce
California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signin...
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal a...
North Korean leader Kim Jong Un praised troops who fought for Russia in Ukraine, calling them "heroic" during a ceremony honoring soldiers of the army...
The U.S. State Department confirmed that all 55 million visa holders are under continuous review, with potential revocations for security or legal vio...
Adidas executives personally visited a small Indigenous town in southern Mexico to apologize for a shoe design criticised as cultural appropriation, p...
California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signing the measure on Thursday to counter Republican efforts in Texas.
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal authorities continue efforts to reduce crime and secure the capital.
Adidas executives personally visited a small Indigenous town in southern Mexico to apologize for a shoe design criticised as cultural appropriation, pledging future collaboration to respect local heritage.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Honduras has brought back mask mandates as COVID-19 cases and a new variant surge nationwide.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
British American Tobacco is preparing to sell its first disposable vape in the U.S. reversing years of opposition to unauthorised devices amidst a booming $8 billion market for synthetic nicotine products.
Large investors, wary of September’s traditional seasonal downturns, moved to lock in profits on Tuesday, according to traders and research firms – a sign that the sell-off in technology shares may reflect a broader retreat from risk.
Pop Mart has posted stunning interim results for the first half of 2025, riding on the explosive popularity of its breakout character Labubu.
Estee Lauder (EL.N) said on Wednesday that its annual profit forecast has come in below Wall Street expectations, as the cosmetics giant continues to face weakness in the United States and China alongside uncertainty over tariffs.
The U.S. Commerce Department has expanded steel and aluminium tariffs on Tuesday, to include more than 400 products, aiming to protect domestic industries.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment