US stocks tread water on economic growth worries
The Dow Jones Industrial Average was almost flat at 42,323.97, while the broad-based S&P 500 Index edged up 0.1 percent to 5,939.58.
The Nasdaq Composite Index rose 0.2 percent to 19,279.52.
The world economy is set to grow by 2.9 percent in 2025 and 2026, the Organisation for Economic Co-operation and Development (OECD) said Tuesday, cutting its forecasts from a previous report.
Wall Street mixed after Trump's steel tariff threat
The OECD also lowered its US growth forecast for this year, from 2.2 percent to 1.6 percent, and warned that 'substantial increases' in trade barriers are among the factors to impact growth if they persist.
'The general trend that is driving markets appears to be the creeping uncertainty over the path of tariffs and trade,' said Art Hogan of B. Riley Wealth Management.
'We're more or less in a 'wait-and-see' mode about what news is delivered to us,' he added.
Since returning to the presidency, Trump has imposed 10 percent tariffs on imports from most trading partners and threatened steeper rates – currently on hold – on dozens of economies.
He has slapped levies on imports of steel and aluminum, which he plans to double this week, straining ties with partners including the European Union.
The market movements come as investors await more details of potential trade deals between Washington and governments around the world, as they seek to avert higher duties.
Looking ahead, traders are also eyeing official employment data for a gauge of how the world's biggest economy is holding up under Trump's policies.
'We'll likely start seeing jobs creation numbers that are lower than the average,' said Hogan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Gold prices up on weaker dollar
NEW YORK: Gold prices climbed more than 1% on Tuesday, helped by a weaker dollar and economic uncertainty ahead of US President Donald Trump's July 9 deadline for the re-introduction of higher trade tariffs. Spot gold rose 1.4% to $3,348.96 per ounce, as of 1003 a.m. EDT (1403 GMT), the highest level since June 24. US gold futures gained 1.6% to $3,361.30. The US dollar weakened on Tuesday as Trump's massive tax-cut and spending bill stoked fiscal worries and combined with concern over trade deals to weigh on sentiment. 'It's just been a function of bargain hunting, dollar weakness (and) continued uncertainty about what's going to happen on the 9th of July,' that is moving gold, said Rhona O'Connell, head of market analysis for EMEA & Asia at StoneX. Gold is likely to average $3000/oz for the fourth quarter and possibly even lower by year-end, O'Connell added. US Senate Republicans were struggling to pass Trump's sweeping tax and spending bill early in the day, amid deep divisions within the party over concern the legislation will add about $3.3 trillion to the nation's debt pile. Gold is traditionally considered a hedge during times of political and economic uncertainty. On the trade front, Treasury Secretary Scott Bessent on Monday warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches, despite good-faith negotiations on trade deals. Investors are also watching out for US ADP employment data due on Wednesday, and Thursday's payrolls data for cues on the Federal Reserve's interest rate policy path. Fed Chair Jerome Powell, addressing a forum in Portugal, said the US economy was in a pretty good position. He added that excluding the tariffs, inflation was behaving as expected and hoped. Markets are currently expecting two rate cuts totalling 50 basis points this year, starting in September. Lower rates boost gold's appeal as it yields no interest. Spot silver was up 0.6% to $36.30 per ounce, palladium gained 1.2% to $1,111.04, while platinum shed 0.1% to $1,350.78.
Business Recorder
3 hours ago
- Business Recorder
Taiwan dollar leads Asia FX rally
BENGALURU: The Taiwan dollar bounced back on Tuesday, driving gains among Asian currencies as the US dollar softened, while equity markets remained upbeat in the face of a looming tariff deadline. The Taiwan dollar rose to as high as 29.164 per US dollar after sinking 2.5% in the previous session. The central bank aggressively intervened in the currency markets right at the end of the first half of the year, three traders told Reuters on Monday. Shares in Taipei climbed more than 2% to their highest level since March 7. Analysts attributed the Taiwan dollar's rebound to investors correcting its month-end weakness on Monday. Substantial hedging needs from low ratios, exporters' forex conversions, and equity-related inflows continue to fuel the rally, said Fiona Lim, a senior forex strategist at Maybank Singapore. The US dollar edged lower as uncertainty over the Senate's push to pass President Donald Trump's fiscal and spending plan weighed on sentiment, driving investors to diversify amid internal party splits. Trump's recent criticism of the Federal Reserve and its chief, Jerome Powell, added pressure on the dollar, fuelling worries about the US central bank's independence and credibility. Dollar weakness lifted Asian currencies, with the Malaysian ringgit up 0.5% at its highest level since October 2. The Philippine peso inched up 0.1%, while the Indonesian rupiah added 0.3%. Meanwhile, the Singapore dollar was hovering near its highest level since October 2014. With the July 9 US tariff deadline approaching, investors are bracing for fallout as trade talks with its partners yield little progress. 'Overall, Asian currencies could continue to climb in the backdrop of Fed cuts, benign oil prices, USD, and a stable China (improving June PMIs),' Lim added. Stock markets in the region advanced, with South Korean equities up 1.4%. Shares of chipmaker Samsung Electronics rose 1.3%, while battery maker LG Energy Solution added 0.3%.
Business Recorder
3 hours ago
- Business Recorder
Dollar gains ground against major peers
NEW YORK: The US dollar gained ground against major currencies including the euro and the Swiss franc on Tuesday after data showed a better-than-expected increase in labor market demand, indicating the Federal Reserve will likely take its time to cut interest rates. The Republican-controlled US Senate passed President Donald Trump's tax and spending bill, approving a massive package that would enshrine many of his top priorities into law and will add $3.3 trillion to the national debt. The bill will move to the House for final approval. Federal Reserve Chair Jerome Powell had reiterated that the central bank plans to wait for more data before it starts monetary policy easing, but he did not rule out a July cut. Powell spoke at a central banking conference in Portugal. The dollar pared losses against the Japanese yen and gained against the Swiss franc after Labor Department data showed job openings rose 374,000 to 7.769 million in May. It pared losses further against the yen and extended gains against the franc after the US Senate cleared the spending bill. The dollar weakened 0.22% to 143.67 against the yen and was up 0.06% to 0.7925 versus the Swiss franc, compared with a drop of 0.46% and 0.28% respectively before the data. The euro was last down 0.20% at $1.176525 after being up 0.05% earlier in the day. 'It was the worst first half of the year for the US dollar index since 1973 with a lot of that weakness being driven by concerns about trade policy and concerns about a slowing economy,' said Matthew Weller, global head of market research at StoneX. 'But I think on a very short-term basis we might be seeing the market get a little bit stretched here and I think there might be a case for a US dollar bounce as we move through July.' The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.161% at 96.908 after being down 0.05% to 96.71. It is on track to snap eight straight sessions of losses.
