Latest Trade News: Wall Street Holds Steady Amidst Trade Uncertainties - Tech Stocks Rising
Procedure's activation status remains undecided by the Commission.
The financial world is eagerly anticipating discussions between China and the USA, hoping to resolve the ongoing trade disputes. Despite this uncertainty, investors on Wall Street continue to show courage, with tech stocks attracting significant attention.
On a bustling Wall Street, tech stocks led the charge on Tuesday. The Nasdaq Composite has returned to positive territory for the year. Recent tariff pronouncements from President Trump did little to cause further distress. However, the question lingers: will China and the USA finally reach a definitive trade agreement? Both sides accused each other the previous day of sabotaging already-agreed-upon deals. Nonetheless, the Trump administration has implored its international trading partners to propose their best offers for trade discussions within the next five weeks.
Michael Brown, a market strategist at Pepperstone, expressed that it appears a call at the highest level might be necessary to break the impasse in the China situation. Some within the Trump administration hint at a potential phone call between Presidents Trump and Xi Jinping sometime this week.
At a press conference on Tuesday, White House press secretary Karoline Leavitt confirmed that such a phone call between the U.S. and Chinese leaders will occur "very soon," without specifying an exact date.
The Dow Jones Index climbed 0.5 percent to 42,520 points, while the S&P 500 closed 0.6 percent higher. The Nasdaq Composite rose 0.8 percent. Preliminary figures reveal that 1,916 companies advanced (Monday: 1,271), 853 declined (1,493), and 62 remained unchanged.
Economy Outlook: A Bleak Picture
New forecasts from the Organisation for Economic Co-operation and Development (OECD) highlight the damaging effects of the trade dispute on economic prospects. The OECD has revised its assumptions for global economic growth in the present and upcoming years, attributing the reduction to increased trade barriers and persistent uncertainty. The USA is particularly affected, according to the OECD, evidenced by China's weak economic data.
In the USA, industrial orders dropped more steeply than expected in April, and the number of job openings increased slightly in April.
The bond market remained stable, with only minor fluctuations in yields. The yield on ten-year US Treasury notes stayed roughly the same at 4.46 percent. UBS anticipates inflating prices and falling US yields due to growth risks; however, analysts do not predict the yield to fall below the 4 percent line for ten-year maturities in the coming months.
Politics: Musk vs Trump
After touching a six-week low, the dollar rebounded strongly, with the dollar index rising by 0.6 percent. The Greenback was also bolstered by the euro's weakness. Following unexpectedly low inflation data for the eurozone, the common currency experienced some pressure. Although a rate cut by the ECB was already anticipated on Thursday, the new pricing data could make additional rate cuts more probable, traders stipulated.
Gold and Oil: A Mixed Market
The dollar's strength impacted the gold price, with the troy ounce dropping by 0.8 percent to $3,353 after a significant surge the previous day. Although gold continues to trade near recent multi-week highs, traders believe ongoing trade disputes are driving demand for the safe haven gold.
Despite a gloomy economic outlook, oil prices continued to climb. Prices for Brent and WTI increased by up to 0.9 percent. Dim hopes for a ceasefire in Ukraine made additional Russian supply less likely, traders said. Additionally, U.S. Congress is preparing new Russia sanctions expected to impact the oil sector.
Tech Stocks on the Rise
Tech stocks found favor with investors. Nvidia shares rose by 2.8 percent, Super Micro Computer gained 4.8 percent, and Micron Technology improved by 4.2 percent after the chipmaker announced the distribution of the first sample of a new AI-focused chip for smartphones.
Walt Disney gained 0.6 percent as the entertainment company announces job cuts worldwide to streamline operations. Dollar General shot up by 15.9 percent after the retailer improved its outlook. MoonLake Immunotherapeutics jumped 18 percent, fueled by rumors of potential takeover talks with Merck & Co (+1.2 percent).
Source: ntv.de, toh/DJ
- Wall Street
The Commission (The Trump administration) has implored its international trading partners to propose their best offers for trade discussions within the next five weeks, as the tech stocks on Wall Street continue to attract significant attention amidst the ongoing trade uncertainties. The question lingers whether technology, specifically the progress in tech stocks, will be a topic of discussion during potential phone calls between Presidents Trump and Xi Jinping, in an attempt to break the impasse in the China situation.
