On Wall Street, investors turned cautious and looked ahead to the release of May's nonfarm payrolls data on Friday. Initial jobless claims rose to an 8-month high, indicating early signs of softening in the labor market amid Trump tariff-induced macroeconomic uncertainty.
Wall Street indexes retained an upward bias, and private businesses added jobs at the slowest rate in nearly two years in May. Investors are awaiting the release of non-farm payrolls data on Friday.
Investors held out for market gains amid expectations that Trump tariffs will provide another earnings boost to retailers, automakers, and industrial goods makers as retail price increases exceed increases in import inflation.
The S&P 500 index and the Nasdaq Composite turned lower after the U.S. president reignited trade tensions to force the European Union and China to accept higher tariffs.
The Trump administration's botched global tariffs are emboldening key trade partners to hold out for better deals. Despite ongoing tariff jitters, the S&P 500 index is up 6%, and the Nasdaq Composite added 10% in May.
Wall Street indexes and global markets rebounded after the federal trade court in Manhattan struck down global tariffs unleashed by the U.S. president, ruling the import tax illegal.
Wall Street indexes attempted to rebound following sharp losses in the previous week. The twin worries of U.S. tariffs and sharply escalating federal government debt kept market enthusiasm in check.
U.S. House Republicans narrowly passed budget legislation after making last-minute amendments to win over hardliners, and the bill is likely to face fewer hurdles in the U.S. Senate.
The S&P 500 index and the Nasdaq Composite turned lower after bond yields inched higher amid worries of the U.S. fiscal position and the Republican Party's lack of will to hold the line on the deficit.
The U.S. Treasury bonds faced renewed selling pressure after Moody's Ratings belatedly stripped the U.S. of its highest credit rating, citing persistent deterioration in fiscal governance and a lack of a plan to lower the overall debt.
The S&P 500 index advanced more than 4%, and the Nasdaq Composite surged more than 5% as the U.S. and China rolled back heavy additional tariffs in the week. The U.S. building permits, housing starts, and completions fell in April.
The Producer Price Index unexpectedly fell in April, driven by the services sector absorbing some of the recent increases in tariff-driven prices. Retail sales, unadjusted for inflation, edged higher at a slower pace as consumers scaled back purchases.
