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
Ukrainian President Volodymyr Zelenskyy is arriving in Oslo for talks on the Russia-Ukraine conflict, the Norwegian government has said. U.S. Presi...
Iranian Foreign Minister Abbas Araghchi said regional issues should be res...
Georgia’s Constitutional Court in Batumi will on Wednesday hear a lawsuit seeking to ban five Georgian opposition parties, four of whic...
U.S. President Donald Trump has criticised Ukrainian President Volodymyr Zelenskyy for continuing to target Russia's energy infrastructure, while Russian strikes on Kyiv overnight killed at least one person and damaged a metro station.
The day after waiving sanctions and tariffs related to Russian exports, U.S. President Donald Trump said on Saturday he has yet to announce a final decision on the matter as Secretary of State Marco Rubio said officials want more time to evaluate the situation.
A Saudi AH-6i helicopter crashed in the Najran region of Saudi Arabia due to a technical malfunction, killing its two crew members, the Saudi-led coalition's spokesman Brigadier General Turki al-Maliki said in a statement on Sunday.
French President Emmanuel Macron has condemned the violence, looting and vandalism that erupted during cost-of-living protests across France. Prime Minister Sébastien Lecornu held crisis talks on Monday, calling for partial curfews and raising the possibility of a state of emergency.
An oil tanker caught fire after striking a naval mine in the southern part of the Strait of Hormuz, Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy said late Sunday.
Azerbaijan and Georgia are targeting more than $2 billion in bilateral trade as the neighbouring countries strengthen energy partnerships, expand transport links and pursue new investment opportunities.
More than 200 U.S. business leaders have joined Secretary of State Marco Rubio in Uzbekistan as Washington steps up efforts to turn closer diplomatic ties with Central Asia into trade and investment deals.
Thirty-five years after restoring independence, Azerbaijan's economy has more than tripled in real terms. Official data reveal how investment, manufacturing, private enterprise and digital development have reshaped the country's economic landscape.
U.S. President Donald Trump has lifted sanctions on Russian diesel exports and announced a Russia-Ukraine energy ceasefire aimed at easing fuel prices ahead of November’s midterm elections. But can Moscow deliver and will the move will bring meaningful relief to markets?
Taiwan plans to buy 30 per cent of Alaska LNG's annual output and invest up to $4.4 billion in the project, but binding contracts and financing remain unresolved as the U.S. pushes to expand energy exports to Asia.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment