
Wall St gains amid trade negotiations, rate cut bets
Stocks pared gains after US President Donald Trump terminated trade negotiations with Canada in response to its digital tax on technology companies.
Even so, all three major US stock indexes posted weekly gains.
Upon reaching its record closing high, the tech-heavy Nasdaq confirmed it entered a bull market when it touched its post "liberation day" trough on April 8.
The blue-chip Dow remained 2.7 per cent below its record closing high reached on December 4.
"This market's been pretty resilient," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
"Investors are riding momentum and looking for breakouts."
"They don't want to get caught on the wrong side of this thing," Carlson added.
"Many investors already have missed out. And now you have the S&P flirting with an all-time high."
The Personal Consumption Expenditures report from the Commerce Department showed consumer income and spending unexpectedly contracted in May.
And while tariffs have yet to affect price growth, inflation continues to hover above the Fed's 2.0 per cent annual inflation target.
A separate report from the University of Michigan confirmed consumer sentiment has improved this month but remains well below December's post-election bounce.
Financial markets have priced in a 76 per cent likelihood that the Fed will implement its first rate cut of the year in September, with a smaller, 19 per cent probability of a rate cut coming as soon as July, according to CME's FedWatch tool.
The United States and China reached an agreement to expedite rare-earth shipments from China to the US, a White House official said, well ahead of the July 9 expiration of the 90-day postponement of US President Donald Trump's "reciprocal" tariffs.
Additionally, US Treasury Secretary Scott Bessent said the administration's trade deals with 18 of the main US trading partners could be done by the September 1 Labor Day holiday.
The Dow Jones Industrial Average rose 432.43 points, or 1.00 per cent, to 43,819.27, the S&P 500 gained 32.05 points, or 0.52 per cent, to 6,173.07 and the Nasdaq Composite gained 105.55 points, or 0.52 per cent, to 20,273.46.
Among the 11 major sectors of the S&P 500, consumer discretionary enjoyed the biggest percentage gain, while energy shares were the laggards.
Chipmaker Micron's upbeat forecast revived investor confidence in artificial intelligence-related stocks while Nvidia rose 1.8 per cent, edging closer to $US4 trillion ($A6.1 trillion) market capitalisation after reclaiming its position as the world's most valuable company.
Nike's shares jumped 15.2 per cent after forecasting a smaller-than-expected drop in first-quarter revenue.
Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the NYSE.
There were 347 new highs and 55 new lows on the NYSE.
On the Nasdaq, 2,111 stocks rose and 2,342 fell as declining issues outnumbered advancers by a 1.11-to-1 ratio.
The S&P 500 posted 35 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 101 new highs and 68 new lows.
Volume on US exchanges was 22.07 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days.
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The Age
3 hours ago
- The Age
Trump shows his impotence by attacking the Fed chair
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In place, to date, is the 10 per cent baseline tariff on all imports to the US, along with some specific tariffs on sectors like steel and aluminium. The 'big ones' – the 'reciprocal' tariffs tailored to individual countries' exports to the US – won't be unveiled until next Wednesday and could take months to show up in inflation data. The risk of cutting rates prematurely and then seeing a tariff-driven spike in the inflation rate explains why the Fed has adopted a 'wait and see' approach to its monetary policies. The relatively strong US economy and job market at present provide no obvious downside to being patient. Trump is impatient – he wants the Fed to cut its target for the federal funds rate from its current range of 4.25 to 4.5 per cent to between 1 and 2 per cent – because he's about to inject a debt-funded fiscal boost into the economy. The US Senate narrowly approved Trump's One Big Beautiful Bill Act on Tuesday (thanks to vice president J.D. Vance's casting vote) after a marathon 24-hour session. Loading That bill, whose measures and cost might be changed when it returns to the House, would add between $US3.3 trillion ($5 trillion) and $US4 trillion ($6.1 trillion) to US deficits and debt over the next decade. With the interest costs on US government debt already running at about $US1 trillion a year, the new debt generated by that bill will add hundreds of billions more – unless the Fed cuts rates. Hence Trump's comment that hundred of billions of dollars are being lost because of its inaction. The problem for the Fed, and Trump, is that the central bank's mandate is to promote price stability and maximum employment, not to enable the US government to borrow more cheaply. Trump's attempts to coerce Powell and his fellow board members into cutting rates to help him politically, if they succeeded, would undermine the Fed's credibility and the trust in it as an institution independent of politics and politicians. Loading That independence is important for the Fed's ability to influence inflation expectations and guide and reassure financial market participants that its policies are consistent and predictable, which is fundamental to financial stability. The risk for America is that, if investors see the Fed's independence compromised and its policies driven by political considerations, there'd be an exodus of capital. Given the deluge of US debt that will need to be financed and refinanced in the bond market, that would itself push interest rates up. Confidence in the Fed and other respected central banks rests on their predictability, and a conviction that their monetary policy settings will either be neutral or, when necessary, counter-cyclical to keep inflation rates under control. Pro-cyclical settings – policies influenced by the demands of politicians who face relatively short political cycles and who want growth regardless of the longer-term consequences – would risk igniting inflation. 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The Advertiser
5 hours ago
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Paramount settles with Trump over 60 Minutes interview
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Media advocacy groups said Trump's novel use of such laws against news outlets could be a way of circumventing legal protections for the media, which can only be held liable for defamation against public figures if they say something they knew or should have known was false. The settlement comes as Paramount prepares for an $US8.4 billion merger with Skydance Media, which will require approval from the US Federal Communications Commission. On the campaign trail in 2024, Trump threatened to revoke CBS's broadcasting licence if elected. He has repeatedly lashed out against the news media, often casting unfavourable coverage as "fake news". The Paramount settlement follows a decision by Walt Disney-owned ABC News to settle a defamation case brought by Trump. As part of that settlement, which was made public in December, the network donated $US15 million to Trump's presidential library and publicly apologised for comments by anchor George Stephanopoulos, who inaccurately said Trump had been found liable for rape. It also follows a settlement by Facebook and Instagram parent company Meta Platforms, which in January said it would pay about $US25 million to settle a lawsuit by Trump over the company's suspension of his accounts after the January 6, 2021, attack at the US Capitol. Trump has vowed to pursue more claims against the media. CBS parent company Paramount has settled a lawsuit filed by US President Donald Trump over an interview broadcast in October, the latest concession by a media company to a president who has targeted outlets over what he describes as false or misleading coverage. Paramount said it would pay $US16 million ($A24 million) to settle the suit with the money allocated to Trump's future presidential library, and not paid to Trump "directly or indirectly". "The settlement does not include a statement of apology or regret," the company statement on Wednesday said. Trump filed a $US10 billion lawsuit against CBS in October, alleging the network deceptively edited an interview that aired on its 60 Minutes news program with then-vice-president and presidential candidate Kamala Harris to "tip the scales in favour of the Democratic Party" in the election. In an amended complaint filed in February, Trump bumped his claim for damages to $US20 billion. CBS aired two versions of the Harris interview in which she appears to give different answers to the same question about the Israel-Hamas war, according to the lawsuit filed in federal court in Texas. CBS previously said the lawsuit was "completely without merit" and had asked a judge to dismiss the case. The White House did not immediately respond to a Reuters' request for comment. Paramount said it also agreed that 60 Minutes would release transcripts of interviews with future US presidential candidates after they aired, subject to redactions as required for legal or national security concerns. The case entered mediation in April. Trump alleged CBS's editing of the interview violated the consumer protection laws that make it illegal to use false, misleading or deceptive acts in commerce. Media advocacy groups said Trump's novel use of such laws against news outlets could be a way of circumventing legal protections for the media, which can only be held liable for defamation against public figures if they say something they knew or should have known was false. The settlement comes as Paramount prepares for an $US8.4 billion merger with Skydance Media, which will require approval from the US Federal Communications Commission. On the campaign trail in 2024, Trump threatened to revoke CBS's broadcasting licence if elected. He has repeatedly lashed out against the news media, often casting unfavourable coverage as "fake news". The Paramount settlement follows a decision by Walt Disney-owned ABC News to settle a defamation case brought by Trump. As part of that settlement, which was made public in December, the network donated $US15 million to Trump's presidential library and publicly apologised for comments by anchor George Stephanopoulos, who inaccurately said Trump had been found liable for rape. It also follows a settlement by Facebook and Instagram parent company Meta Platforms, which in January said it would pay about $US25 million to settle a lawsuit by Trump over the company's suspension of his accounts after the January 6, 2021, attack at the US Capitol. Trump has vowed to pursue more claims against the media. CBS parent company Paramount has settled a lawsuit filed by US President Donald Trump over an interview broadcast in October, the latest concession by a media company to a president who has targeted outlets over what he describes as false or misleading coverage. Paramount said it would pay $US16 million ($A24 million) to settle the suit with the money allocated to Trump's future presidential library, and not paid to Trump "directly or indirectly". "The settlement does not include a statement of apology or regret," the company statement on Wednesday said. Trump filed a $US10 billion lawsuit against CBS in October, alleging the network deceptively edited an interview that aired on its 60 Minutes news program with then-vice-president and presidential candidate Kamala Harris to "tip the scales in favour of the Democratic Party" in the election. In an amended complaint filed in February, Trump bumped his claim for damages to $US20 billion. CBS aired two versions of the Harris interview in which she appears to give different answers to the same question about the Israel-Hamas war, according to the lawsuit filed in federal court in Texas. CBS previously said the lawsuit was "completely without merit" and had asked a judge to dismiss the case. The White House did not immediately respond to a Reuters' request for comment. Paramount said it also agreed that 60 Minutes would release transcripts of interviews with future US presidential candidates after they aired, subject to redactions as required for legal or national security concerns. The case entered mediation in April. Trump alleged CBS's editing of the interview violated the consumer protection laws that make it illegal to use false, misleading or deceptive acts in commerce. Media advocacy groups said Trump's novel use of such laws against news outlets could be a way of circumventing legal protections for the media, which can only be held liable for defamation against public figures if they say something they knew or should have known was false. The settlement comes as Paramount prepares for an $US8.4 billion merger with Skydance Media, which will require approval from the US Federal Communications Commission. On the campaign trail in 2024, Trump threatened to revoke CBS's broadcasting licence if elected. He has repeatedly lashed out against the news media, often casting unfavourable coverage as "fake news". The Paramount settlement follows a decision by Walt Disney-owned ABC News to settle a defamation case brought by Trump. As part of that settlement, which was made public in December, the network donated $US15 million to Trump's presidential library and publicly apologised for comments by anchor George Stephanopoulos, who inaccurately said Trump had been found liable for rape. It also follows a settlement by Facebook and Instagram parent company Meta Platforms, which in January said it would pay about $US25 million to settle a lawsuit by Trump over the company's suspension of his accounts after the January 6, 2021, attack at the US Capitol. Trump has vowed to pursue more claims against the media. CBS parent company Paramount has settled a lawsuit filed by US President Donald Trump over an interview broadcast in October, the latest concession by a media company to a president who has targeted outlets over what he describes as false or misleading coverage. Paramount said it would pay $US16 million ($A24 million) to settle the suit with the money allocated to Trump's future presidential library, and not paid to Trump "directly or indirectly". "The settlement does not include a statement of apology or regret," the company statement on Wednesday said. Trump filed a $US10 billion lawsuit against CBS in October, alleging the network deceptively edited an interview that aired on its 60 Minutes news program with then-vice-president and presidential candidate Kamala Harris to "tip the scales in favour of the Democratic Party" in the election. In an amended complaint filed in February, Trump bumped his claim for damages to $US20 billion. CBS aired two versions of the Harris interview in which she appears to give different answers to the same question about the Israel-Hamas war, according to the lawsuit filed in federal court in Texas. CBS previously said the lawsuit was "completely without merit" and had asked a judge to dismiss the case. The White House did not immediately respond to a Reuters' request for comment. Paramount said it also agreed that 60 Minutes would release transcripts of interviews with future US presidential candidates after they aired, subject to redactions as required for legal or national security concerns. The case entered mediation in April. Trump alleged CBS's editing of the interview violated the consumer protection laws that make it illegal to use false, misleading or deceptive acts in commerce. Media advocacy groups said Trump's novel use of such laws against news outlets could be a way of circumventing legal protections for the media, which can only be held liable for defamation against public figures if they say something they knew or should have known was false. The settlement comes as Paramount prepares for an $US8.4 billion merger with Skydance Media, which will require approval from the US Federal Communications Commission. On the campaign trail in 2024, Trump threatened to revoke CBS's broadcasting licence if elected. He has repeatedly lashed out against the news media, often casting unfavourable coverage as "fake news". The Paramount settlement follows a decision by Walt Disney-owned ABC News to settle a defamation case brought by Trump. As part of that settlement, which was made public in December, the network donated $US15 million to Trump's presidential library and publicly apologised for comments by anchor George Stephanopoulos, who inaccurately said Trump had been found liable for rape. It also follows a settlement by Facebook and Instagram parent company Meta Platforms, which in January said it would pay about $US25 million to settle a lawsuit by Trump over the company's suspension of his accounts after the January 6, 2021, attack at the US Capitol. Trump has vowed to pursue more claims against the media.

The Age
5 hours ago
- The Age
Trump says White House will ‘take a look' at deporting Musk
Donald Trump said the White House will 'take a look' at deporting South African-born Elon Musk in latest blow to tech billionaire.