Trump's Tariff Threat Sends World Stock Markets Sliding; Wall Street Hopes for Trade Resolution Before Earnings
Dollar Rises as ADP Data, Euro, and Canadian Dollar Fall
The U.S. dollar edged 0.3% higher to C$1.3695, and the euro was down 0.2% at $1.1676. Trump was also exploring the option of a base tariff of 15% and 20% for many countries, above the current 10%. Although Canada's trade is protected under the USMCA, analysts warn that new tariffs on the EU could disrupt global markets.
U.S. Stocks Sharply Higher, Nvidia Tops $4 Trillion
Though tensions over tariffs have been high, Wall Street's major indexes surged to new highs on Thursday. Nvidia was the first chipmaker to finish the day with a market value greater than $4 trillion, ending the day up 1.8%. The S&P 500 rose 0.61%, and the Nasdaq gained 0.95%. Investors remain cautiously optimistic but are wary of trade news heading into next week's earnings season.
Asian Markets Mixed as Trading Tensions Remain in Focus
MSCI's Asia-Pacific index (excluding Japan) was up 0.5%, leaving it 0.7% higher for the week. Hong Kong's Hang Seng advanced 1.3%, and China's CSI300 added 0.5%. Tokyo's Nikkei ended the day down 0.1% and heading for a 0.6% loss on the week after Fast Retailing shed as much as 7% following a warning on the impact of a new round of tariffs.
Focus Shifts to U.S. Earnings
Investors are gearing up for next week's second-quarter U.S. earnings season, which JPMorgan Chase will kick off on Tuesday. Analysts have been paying attention to how businesses are handling Trump's simmering trade war, which began with his announcement on April 2 of "reciprocal" tariffs.
Commodities and Bonds Update
Oil prices rose from a 2 percent fall on Thursday. Brent crude was up 0.6 percent at $69.06 a barrel, and WTI crude was up 0.7 percent at $67.05. Spot gold rose 0.2 percent to $3,329 an ounce. U.S. 10-year Treasury yields edged up to 4.3577 percent on lower-than-expected jobless claims.
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