US stocks end higher, shrugging off Powell firing fears
Major indices had moved suddenly negative following reports that a dismissal could be imminent. But they recovered quickly once Trump ruled out firing Powell, for now.
Trump, who has bitterly attacked the Fed chair for months, said such a move was 'highly unlikely' and that 'I'm not talking about that' when asked if he would fire Powell.
The tech-rich Nasdaq Composite Index advanced 0.3 per cent to 20,730.49, a third straight closing record.
The Dow Jones Industrial Average gained 0.5 per cent to 44,254.78, while the broad-based S&P 500 advanced 0.3 per cent to 6,263.70.
'It's very clear that the market wants to go higher,' said Adam Sarhan of 50 Park Investments, who described investor reaction to Trump's mixed messaging on Powell as typical of a bullish tilt.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'Every time we get bad news thrown at it, the market shrugs it off and continues to rally, including today,' Sarhan said.
Otherwise, markets absorbed a generally benign wholesale inflation report. The producer price index was unchanged on a month-on-month basis, beating analysts' expectations and cooling from a 0.3 per cent rise in May.
The Fed's 'Beige Book' survey of economic conditions, however, pointed to growing impacts from Trump's myriad tariffs.
Many firms said they passed along 'at least a portion of cost increases' to consumers due to tariffs, while also expressing expectations that costs will remain elevated.
Among individual companies, Goldman Sachs jumped 0.8 per cent after quarterly earnings easily topped analyst estimates.
CEO David Solomon predicted an uptick in dealmaking, pointing to greater 'confidence level on the part of CEOs, that significant scaled industry consolidation is possible.'
Ford slumped 2.9 per cent after disclosing that it would account for US$570 million in costs connected to fuel injectors in several models from recent years, including Bronco Sport vehicles from 2021 to 2024.
But Johnson & Johnson surged 6.2 per cent as it lifted its full-year forecast after quarterly earnings topped estimates. Analysts noted that the health care company also lowered its estimate for the cost hit from tariffs. AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
19 minutes ago
- Straits Times
US, China to launch new talks on tariff truce extension, easing path for Trump-Xi meeting
FILE PHOTO: The American and Chinese flags are photographed on the negotiating table, during a bilateral meeting between the United States and China, in Geneva, Switzerland, May 10, 2025. KEYSTONE/EDA/Martial Trezzini/Handout via REUTERS/ File Photo STOCKHOLM - Top U.S. and Chinese economic officials will resume talks in Stockholm on Monday to try to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15% tariff on most EU goods exports to the U.S., including autos. The bloc will also buy $750 billion worth of American energy and make $600 billion worth of U.S. investments in coming years. No similar breakthrough is expected in the U.S.-China talks but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely. An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. A U.S. Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days. Top stories Swipe. Select. Stay informed. Singapore Not feasible for S'pore to avoid net‑zero; all options to cut energy emissions on table: Tan See Leng Singapore With regional interest in nuclear energy rising, S'pore must build capabilities too: Tan See Leng Singapore New Mandai North Crematorium, ash-scattering garden to open on Aug 15 Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Science Journals: Lessons from weird fish sold in Singapore's wet markets World US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war Asia Displaced villagers at Thai-Cambodian border hope to go home as leaders set to meet for talks Trump's administration is poised to impose new sectoral tariffs that will impact China within weeks, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters on Sunday before European Commission President Ursula von der Leyen struck their tariff deal. DEEPER ISSUES Previous U.S.-China trade talks in Geneva and London in May and June focused on bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include U.S. complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that U.S. national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. "I'd be surprised if there is an early harvest on some of these things but an extension of the ceasefire for another 90 days seems to be the most likely outcome," Kennedy said. U.S. Treasury Secretary Scott Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption -- a decades-long goal for U.S. policymakers. Analysts say the U.S.-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on U.S. industries. TRUMP-XI MEETING? In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon on a landmark trip to China, and a new flare-up of tariffs and export controls would likely derail planning. Sun Chenghao, a fellow at Tsinghua University's Center for International Security and Strategy in Beijing, said that a Trump-Xi summit would be an opportunity for the U.S. to lower the 20% tariffs on Chinese goods related to fentanyl. In exchange, he said the Chinese side could make good on its 2020 pledge to increase purchases of U.S. farm products and other goods. "The future prospect of the heads of state summit is very beneficial to the negotiations because everyone wants to reach an agreement or pave the way in advance," Sun said. Still, China will likely request a reduction of multi-layered U.S. tariffs totaling 55% on most goods and further easing of U.S. high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the U.S. trade deficit with China, which reached $295.5 billion in 2024. REUTERS
AsiaOne
19 minutes ago
- AsiaOne
US and EU avert trade war with 15% tariff deal, World News
TURNBERRY, Scotland — The US struck a framework trade agreement with the European Union on Sunday (July 27), imposing a 15 per cent import tariff on most EU goods — half the threatened rate — and averting a bigger trade war between the two allies that account for almost a third of global trade. US President Donald Trump and European Commission President Ursula von der Leyen announced the deal at Trump's luxury golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line, following months of negotiations. "I think this is the biggest deal ever made," Trump told reporters, lauding EU plans to invest some US$600 billion (S$768 billion) in the United States and dramatically increase its purchases of US energy and military equipment. Trump said the deal, which tops a US$550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of US exporters. Von der Leyen, describing Trump as a tough negotiator, said the 15 per cent tariff applied "across the board", later telling reporters it was "the best we could get." "We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability," she said. The agreement mirrors key parts of the framework accord reached by the US with Japan, but like that deal, it leaves many questions open, including tariff rates on spirits, a highly charged topic for many on both sides of the Atlantic. The deal, which Trump said calls for US$750 billion of EU purchases of US energy in coming years and "hundreds of billions of dollars" of arms purchases, likely spells good news for a host of EU companies, including Airbus, Mercedes-Benz and Novo Nordisk, if all the details hold. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. German carmakers, VW, Mercedes and BMW were some of the hardest hit by the 27.5 per cent US tariff on car and parts imports now in place. The baseline 15 per cent tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal. Bernd Lange, the German Social Democrat who heads the European Parliament's trade committee, said the tariffs were imbalanced and the hefty EU investment earmarked for the US would likely come at the bloc's own expense. Trump retains the ability to increase the tariffs in the future if European countries do not live up to their investment commitments, a senior US administration official told reporters on Sunday evening. The euro rose around 0.2 per cent against the dollar, sterling and yen within an hour of the deal's being announced. Mirror of Japan deal Carsten Nickel, deputy director of research at Teneo, said Sunday's accord was "merely a high-level, political agreement" that could not replace a carefully hammered out trade deal: "This, in turn, creates the risk of different interpretations along the way, as seen immediately after the conclusion of the US-Japan deal." While the tariff applies to most goods, including semiconductors and pharmaceuticals, there are exceptions. The US will keep in place a 50 per cent tariff on steel and aluminium. Von der Leyen suggested the tariff could be replaced with a quota system; a senior administration official said EU leaders had asked that the two sides continue to talk about the issue. Von der Leyen said there would be no tariffs from either side on aircraft and aircraft parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. "We will keep working to add more products to this list," von der Leyen said, adding that spirits were still under discussion. A US official said the tariff rate on commercial aircraft would remain at zero for now, and the parties would decide together what to do after a US review is completed, adding there is a "reasonably good chance" they could agree to a lower tariff than 15 per cent. No timing was given for when that probe would be completed. The deal will be sold as a triumph for Trump, who is seeking to reorder the global economy and reduce decades-old US trade deficits, and has already reached similar framework accords with Britain, Japan, Indonesia and Vietnam, although his administration has not hit its goal of "90 deals in 90 days." US officials said the EU had agreed to lower non-tariff barriers for automobiles and some agricultural products, though EU officials suggested the details of those standards were still under discussion. [[nid:720501]] "Remember, their economy is US$20 trillion... they are five times bigger than Japan," a senior US official told reporters during a briefing. "So the opportunity of opening their market is enormous for our farmers, our fishermen, our ranchers, all our industrial products, all our businesses." Trump has periodically railed against the EU, saying it was "formed to screw the United States" on trade. He has fumed for years about the US merchandise trade deficit with the EU, which in 2024 reached US$235 billion, according to US Census Bureau data. The EU points to the US surplus in services, which it says partially redresses the balance. Trump has argued that his tariffs are bringing in "hundreds of billions of dollars" in revenues for the US while dismissing warnings from economists about the risk of inflation. On July 12, Trump threatened to apply a 30 per cent tariff on imports from the EU starting on Aug 1, after weeks of negotiations failed to reach a comprehensive trade deal. The EU had prepared countertariffs on 93 billion euros (S$140 billion) of US goods in the event a deal to avoid the tariffs could not be struck. [[nid:720506]]
Straits Times
an hour ago
- Straits Times
What is the status of US tariff negotiations?
Find out what's new on ST website and app. On July 27, the US struck a framework deal with the EU, imposing a 15 per cent US import tariff on most EU goods, half the threatened rate. WASHINGTON - US tariff negotiations with key trading partners have shifted into high gear as economies race to avoid steeper duties before an Aug 1 deadline. Many of these tariff hikes were part of a package first announced in April, under which dozens of economies were due to face higher levies - up from a 10 per cent level – over their trade surpluses with the United States. The twice-postponed deadline for duties to take effect is now Friday, Aug 1 . But Washington has expanded its group of targets coming up against these tariffs, while announcing agreements with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines. A deal with the European Union unveiled on July 27 sees a 15 per cent tariff imposed on European exports to the United States, down from the 30 per cent that Mr Trump earlier threatened. Where do other US trade talks stand? South Korea: Heightened pressure Seoul is racing to reach a deal with Washington, as Tokyo's success in landing an agreement has 'amped up the pressure for South Korea,' a government source told AFP. Top stories Swipe. Select. Stay informed. Singapore Not feasible for S'pore to avoid net‑zero; all options to cut energy emissions on table: Tan See Leng Singapore With regional interest in nuclear energy rising, S'pore must build capabilities too: Tan See Leng Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Singapore New Mandai North Crematorium, ash-scattering garden to open on Aug 15 World Three dead, several injured after train derails in Germany World US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war Opinion Vaping, Kpods and teenage risk-taking: An old problem in a new world Local media reported that Seoul was preparing to propose more than US$100 billion (S$128 billion) in investment as part of a broader agreement, with expected participation by major firms such as Samsung and Hyundai Motor. The South Korean government did not confirm this. But South Korean officials have outlined proposals to deepen collaboration in sectors like shipbuilding, semiconductors and batteries. National Security Advisor Wi Sung-lak has told reporters that the two countries are in 'the final and most crucial phase of negotiations' to avert Mr Trump's proposed 25 per cent duty. India: Cautious optimism Indian Commerce Minister Piyush Goyal told Bloomberg Television on July 24 that he was optimistic his country could reach an agreement with the United States to avert Washington's 26 per cent tariff threat. Mr Goyal insisted there were not any sticking points in the US-India relationship or in trade talks, and clarified that immigration rules – including those around H-1B visas for skilled workers – had not come up in negotiations. Despite Mr Goyal's remarks, local media reported the prospects of an interim deal before Aug 1 had dimmed. Taiwan: Working hard Taiwanese Premier Cho Jung-tai said on July 24 that officials are 'working hard' on negotiations, amid worries that an unfavorable tariff level could hit the self-ruled island's economy. Vice-President Hsiao Bi-khim said Taipei's negotiating team was 'working almost 24 hours a day to achieve trade balance and Taiwan's industrial interests, and even to further deepen cooperation'. Canada, Mexico: Deal unclear Although Canada and Mexico were spared from Mr Trump's 'reciprocal' tariffs announced in April, goods from both countries entering the United States generally face a separate 25 per cent duty if they fall outside a North American trade pact. This figure stands to jump to 30 per cent for Mexico come Aug 1, while the level for Canada was set at 35 per cent. Mexican President Claudia Sheinbaum said her administration was 'doing everything' possible to avert the duties and that she would speak with Mr Trump if necessary to try to reach a pact. Mr Trump told reporters on July 25 that there was no deal with Canada so far. Brazil: Political nature Brazil is girding for a virtual trade embargo on its planes, grains and other goods if Mr Trump's threatened 50 per cent tariff on its exports takes effect on Aug 1. The United States runs a trade surplus with Latin America's biggest economy, which was not originally expected to face steeper tariffs under Mr Trump's 'reciprocal' duties plan. Mr Trump has not attempted to hide the political motivation in targeting Brazil, citing a judicial 'witch hunt' against his right-wing ally, former president Jair Bolsonaro, when he unveiled the tariff rate. The political nature of the spat makes a last-minute deal appear less likely. AFP
