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
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Egypt on Friday blamed Ethiopia for “reckless and irresponsible” management of the Nile, saying unilateral operations at the Grand Ethiopian Renaissance Dam (GERD) have worsened flooding in Sudan and pose a direct threat to Egyptian lands and lives.
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The U.S. carried out a strike on Friday against a “narco-trafficking vessel” off the coast of Venezuela, killing four people aboard, Pentagon chief Pete Hegseth said.
British police said on Friday they may have accidentally shot two victims, including one who died, in their attempts to bring under control an attack on a Manchester synagogue during Yom Kippur, the holiest day in the Jewish calendar.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
Video from the USGS (United States Geological Survey) showed on Friday (19 September) the Kilauea volcano in Hawaii erupting and spewing lava.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A powerful 7.4-magnitude earthquake struck off Russia’s Kamchatka Peninsula on 13 September with no tsunami threat, coming just weeks after the region endured a devastating 8.8-magnitude quake — the strongest since 1952.
Shein is opening its first permanent physical stores in France, starting in Paris and expanding to five more cities. The fast-fashion giant aims to test brick-and-mortar retail in one of the world’s most influential fashion markets.
Tesla sales hit a record 497,099 vehicles in Q3 as buyers rushed before the U.S. tax credit expired according to reports. Despite the surge, experts warn the gains may not last amid rising competition.
American soybean farmers are struggling as China, once their largest buyer, shifts purchases to Argentina amid trade tensions and export incentives.
U.S.-based aviation company Boeing is preparing to produce a new narrow-body, single-aisle aircraft to replace its 737 Max model, sources report.
The Organization of Petroleum exporting countries OPEC+ is likely to consider a larger oil production increase of 411,000 barrels per day for November at its meeting next Sunday as rising oil prices encourage the group to try to regain more market share, said sources familiar with the talks.
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