NEW YORK (AP) – Most US stocks edged upwards after a mixed trading session on Thursday, leaving investors with little clarity on the trajectory of the US economy amid President Donald Trump’s Trade War. The S&P 500 gained 0.4%, bringing its rally to three consecutive days, which keeps it 3.7% shy of its all-time high. The Dow Jones Industrial Average rose 271 points (0.6%), while the Nasdaq Composite dipped 0.2%.
The stock market found support from the Ministry of Ease and a decline in Treasury yields. These shifts came after economic reports indicated the Federal Reserve may have the latitude to lower interest rates later this year.
However, there remains uncertainty over a potential recession, as many investors reacted to Trump’s temporary suspension of certain tariffs. A key report highlighted that consumer spending at US retailers didn’t match last month’s projections, while wholesale inflation was more favorable than anticipated. Other updates suggested that US manufacturing continues to contract, yet jobless claims exceeded forecasts.
Trader Jonathan Corpina works on the floor of the New York Stock Exchange on Wednesday, May 14, 2025 (AP Photo/Richard Drew)
Despite the recent agreement between China and the US on a 90-day suspension of some tariffs, the trade narrative remains unresolved, according to Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.
This uncertainty affected Walmart’s stock, which dropped 0.5% despite reporting stronger-than-expected profits for the recent quarter.
Walmart also noted that it would not provide a profit forecast for the upcoming quarter, similar to other US companies navigating the implications of Trump’s initial tariff actions. Chief Financial Officer John David Rainey mentioned that “the range of potential outcomes is broad and uncertain,” but forecasted sales growth of 3.5% to 4.5% excluding currency fluctuations.
The country’s largest retailer indicated that price adjustments are necessary due to rising costs attributed to Trump’s tariffs.
Currency traders will watch monitors showing the foreign exchange rates between the Korean Composite Stock Index (KOSPI) and the US dollar in the Forex Trading Room on Thursday, May 15, 2025 at the Korean Composite Stock Index (KOSPI) and the US dollar in the Forex Trading Room at Kevhana Bank Headquarters in Seoul, South Korea.
Equipment manufacturer Deere reported that, like many other firms, “short-term market challenges” are significant. It adjusted its profit forecast downward, yet Deere’s shares rose 3.8% after exceeding analysts’ expectations for the recent quarter.
Cisco Systems also enjoyed a positive day, climbing 4.8% following a strong earnings report. Analysts expressed optimism regarding Cisco’s advancements in artificial intelligence.
On the downside, Dick’s Sporting Goods plummeted 14.6% after announcing plans to acquire a struggling Foot Locker chain for $2.4 billion. Despite this, Dick’s reported higher profits for the recent quarter than analysts anticipated.
Trader Jonathan Mueller, right, Michael Capolino works on the floor of the New York Stock Exchange on Wednesday, May 14, 2025 (AP Photo/Richard Drew)
Footlockers saw an impressive recovery, rising 85.7% despite a dramatic 41% decline for the year thus far.
The S&P 500 climbed 24.35 points to 5,916.93. The Dow Jones industrial average also saw gains, reaching 42,322.75, up 271.69 points, while the Nasdaq composite fell by 34.49 to settle at 19,112.32.
In oil markets, crude oil prices increased by approximately 2% due to expectations of increased supply. This came amidst discussions regarding US and Iran negotiations over the country’s nuclear program, potentially easing sanctions against one of the leading oil producers.
Additionally, China rolled back some of its “non-tariff” measures on the US, part of a temporary agreement in the trade war, yet demanded the US rectify what it termed “wrong practices.”
A spokesman for the Chinese Commerce Department accused the Trump administration of infringing on global trade rules with its declaration that use of Ascend Computer Chips from Huawei Technologies would violate US export restrictions.
The stock indices in Hong Kong fell by 0.8%, and Shanghai dipped 0.7%, although market performance varied across Asia and Europe.
In the bond market, the yield on the 10-year Treasury dropped to 4.44% from 4.53% at the end of Wednesday’s trading. This decrease may encourage investors to pay higher prices for stocks and other investments.
The yield on two-year bonds, which closely reflects traders’ expectations regarding the Federal Reserve’s actions, fell from 4.05% to 3.96%, as speculation grows that rate cuts may resume in September.
The Fed has maintained key interest rates this year while observing the impact of Trump’s trade policies on the economy. Easing borrowing costs could stimulate consumer and business spending, but concerns about rising inflation due to tariffs may counterbalance this.
Fed Chair Jerome Powell cautioned in a speech Thursday that the world may experience “more frequent and prolonged periods of supply shocks.”
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AP business writers Matt Ott and Elaine Kurtenbach contributed.
Source: apnews.com