US Markets Tread Water Amidst China Trade Uncertainty
Ongoing doubt persists: U.S. stock markets facing potential downturn
In a rollercoaster week, the global investing community is leaning hard on China. That's after the dust settles from the US-UK trade deal. Skepticism prevails regarding a swift resolution, and the Wall Street Journal took a hit.
Ahead of the weekend's US-China trade talks, Wall Street barely moved. The Dow Jones Industrial Average, chock-full of blue-chip stocks, dipped 0.3%, closing at 41,249. The S&P 500 and the ultramodern Nasdaq tech index followed suit, respectively falling 0.1% to 5,651 and remaining unchanged at 17,928.
Representatives from the planet's two biggest nations are gearing up to talk tariffs in Switzerland. Investors hang on the hope that these talks will finally resolve the trade war, causing ripple effects for global economic growth. However, President Trump's hint at lower tariffs on Chinese goods, down from a staggering 140% last month, wasn't enough to keep the analysts' doubt at bay. "Lower the tariffs from 140% to 80%, and you'd think it's a sweet deal," Michael Matousek from US Global Investors mentions, "but when you're still staring at 80% tariffs, people just won't buy."
The previous day, the US and the UK inked their first trade deal - a first since Trump imposed his initial tariffs late last month. While the details are still vague, a base tariff for imports into the US remains in place.
Golden Reprieve
The edginess on the stock market was evident through the soaring gold prices. David Meger, boss hog of metals trading at High Ridge Futures, notes, "The overall persistent uncertainty surrounding tariffs is probably the primary factor for gold's price hike." Gold price ascended 0.7% to an eye-popping $3,327 per ounce. The oil market bore witness to some adrenaline as well, with North Sea Brent and US WTI crude prices kicking some serious oil can, increasing by approximately 1.7% to $63.88 and $60.99 per barrel, respectively.
Vandana Hari, founder of Vanda Insights, reckons if both sides commit to informal trade talks and gradually lowering high tariffs, the oil price could experience a surge of an additional $2 to $3 per barrel.
Market benchmarks took a beating from quarterly reports. Expedia, an online travel juggernaut, plummeted 7.3% after missing analysts' revenue expectations. Meanwhile, investors cheered for Lyft, the ride-hailing king, as its shares skyrocketed by 28% following a first-quarter adjusted earnings per share of 24 cents, beating analysts' projections by 5 cents. Lyft's share buyback plans also pulled some strings. Trade Desk's shares soared 18.6% as the advertising juggernaut reported first-quarter earnings and revenue that outstripped Wall Street estimates.
Glean more about today's nitty-gritty stock market action here.
Source: ntv.de, ino/rts
- Wall Street
- Stock Market
- Dow Jones
- S&P 500
- Gold Prices
- Oil Prices
[1] The escalating trade conflict between the US and China causes market volatility and poses risks to global economic growth. (ntv.de)[2] Tariff uncertainty remains a significant factor influencing the investment landscape, with investors warily watching for signs of trade agreement progress. (ino/rts)[3] The looming uncertainty surrounding trade agreements between the US and its major trading partners continues to impact global stock markets. (Forbes)
- Despite a week of market fluctuations due to China-related trade concerns, the employment policy within EC countries remains unfazed.
- As the US-China trade talks approach and gold prices surge, analysts debate the impact of a potential resolution on global finance, including stock and oil markets.
- The fluctuations in average stock prices, such as those of Dow Jones, S&P 500, and Gold, are influenced not only by companies' quarterly reports but also by ongoing trade disputes and tariff uncertainties.
