logo
Wall Street ends mostly flat in choppy trade as Treasury yields ease

Wall Street ends mostly flat in choppy trade as Treasury yields ease

The benchmark US 10-year note yield fell 5.4 basis points to 4.543% after hitting its highest since February. (AP pic)
NEW YORK : US stocks closed a choppy session little changed on Thursday, erasing initial declines as Treasury yields eased off recent highs after the House of Representatives passed US President Donald Trump's tax and spending bill.
Recent concerns about the US deficit have pushed up Treasury yields and pressured stocks, but longer-dated yields fell on Thursday, allowing stocks to take a breather. The benchmark US 10-year note yield fell 5.4 basis points to 4.543% after hitting its highest since February.
The benchmark S&P 500 and the Dow Jones Industrial Average ended flat, while the Nasdaq edged higher. All three major Wall Street indexes had posted their biggest single-day percentage drops in a month on Wednesday as Treasury yields spiked on US debt worries.
The Republican-controlled House voted by a slim margin to pass the bill, which would fulfill many of Trump's campaign pledges to his political base, but will increase the US$36.2 trillion US debt pile by US$3.8 trillion over the next decade, according to the nonpartisan Congressional Budget Office.
Investors are also weighing the impact of Trump's tariffs on US imports, including on consumer prices.
'The problem today was the tax bill, which appears to have passed,' said George Young, partner and portfolio manager at Villere & Co in New Orleans. 'But we are thinking about bigger potential problems and the two main things on the table are tariffs and interest rates.'
'The market hates uncertainty and we've still got this overhang of the tariffs and the bond market, which is totally apolitical and totally international,' Young added.
The Dow Jones Industrial Average fell just 1.35 points to 41,859.09, the S&P 500 lost merely 2.60 points or 0.04% at 5,842.01 and the Nasdaq Composite gained 53.09 points, or 0.28%, at 18,925.74.
Eight out of 11 S&P 500 subsectors finished lower, led by utilities, healthcare, energy and consumer staples stocks. Consumer discretionary, communication services and technology stocks advanced.
Megacap growth stocks, including Nvidia, Amazon and Tesla, gained. Alphabet was 1.3% firmer after touching a nearly three-month high. Apple ended down 0.36%.
Snowflake jumped more than 13% after the cloud computing firm raised its fiscal 2026 product revenue forecast.
Analog Devices fell 4.6% despite the semiconductor manufacturer beating Wall Street estimates for quarterly results.
Shares of solar energy companies including First Solar dropped as Trump's tax bill is expected to end a number of green-energy subsidies. First Solar finished down 4.3%.
Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE. There were 68 new highs and 99 new lows on the NYSE.
The S&P 500 posted four new 52-week highs and nine new lows while the Nasdaq Composite recorded 49 new highs and 109 new lows.
Volume on US exchanges was 16.09 billion shares, compared with the 17.56 billion average for the full session over the last 20 trading days.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

EU approves counter-tariffs on US goods, says trade deal within reach
EU approves counter-tariffs on US goods, says trade deal within reach

New Straits Times

time3 hours ago

  • New Straits Times

EU approves counter-tariffs on US goods, says trade deal within reach

BRUSSELS: The European Commission said on Thursday a negotiated trade solution with the United States is within reach — while EU members voted to approve counter-tariffs on 93 billion euros ($109 billion) of US goods in case the talks collapse. The 27-nation bloc's executive has repeatedly said its primary focus is on reaching a deal to avert 30 per cent US tariffs that U.S. President Donald Trump has said he will apply on Aug 1. "Our focus is on finding a negotiated outcome with the US ... We believe such an outcome is within reach," an EU spokesperson said in response to reporters' questions. Alongside negotiations, the Commission has pressed on with plans for potential countermeasures, merging two packages of proposed tariffs of 21 billion euros and 72 billion euros into a single list and submitting this to EU members for approval. The rate would be up to 30 per cent, designed to mirror US tariffs, EU sources said. Diplomats said EU countries overwhelmingly approved the measures today, which the Commission later confirmed. The first package of countermeasures would enter force on Aug 7, with tariffs on soybeans and almonds delayed until Dec 1, an EU official said. The second package would enter force in two stages on Sept 7 and Feb 7. So far the EU has held back from imposing any countermeasures, despite Trump's tariffs already covering 70 per cent of EU exports. EU member states authorised the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations. CLOSING ON DEAL The EU and United States now appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15 per cent tariff on EU goods imported into the US, mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision. The White House said discussions of a deal should be considered "speculation." Trump trade adviser Peter Navarro told Bloomberg News the report from the EU should be taken with "a grain of salt." French Finance Minister Eric Lombard and Italian Industry Minister Adolfo Urso told a joint press conference in Paris they were not aware of a draft agreement, Urso adding he would only pass judgment when one was reached. There was little information available about what the EU would offer the United States to secure a deal. One EU diplomat said the bloc was not looking at a pledge of investment in the United States, as Japan has agreed. Another said the EU might reduce some of its own duties. Its current import duty for cars is 10 per cent. Under the outlines of the potential deal, the 15 per cent rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5 per cent. There could also be exemptions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said.

Flurry of trade deals with US offers relief for some Asian countries, while others wait for more Trump antics
Flurry of trade deals with US offers relief for some Asian countries, while others wait for more Trump antics

The Star

time3 hours ago

  • The Star

Flurry of trade deals with US offers relief for some Asian countries, while others wait for more Trump antics

BANGKOK (AP): US President Donald Trump has announced trade deals with Japan and a handful of other Asian countries that will relieve some pressure on companies and consumers from sharply higher tariffs on their exports to the United States. A deal with China is under negotiation, with US Treasury Secretary Scott Bessent saying an Aug. 12 deadline might be postponed again to allow more time for talks. Steep tariffs on US imports of steel and aluminum remain, however, and many other countries, including South Korea and Thailand, have yet to clinch agreements. Overall, economists say the tariffs inevitably will dent growth in Asia and the world. Trump and Japanese Prime Minister Shigeru Ishiba announced a deal Wednesday that will impose 15% tariffs on U.S. imports from Japan, down from Trump's proposed 25% "reciprocal' tariffs. It was a huge relief for automakers like Toyota Motor Corp. and Honda, whose shares jumped by double digits in Tokyo. Trump also announced trade deals with the Philippines and Indonesia. After meeting with Philippine President Ferdinand Marcos, Jr., Trump said the import tax on products from his country would be subject to a 19% tariff, down just 1% from the earlier threat of a 20% tariff. Indonesia also will face a 19% tariff, down from the 32% rate Trump had recently said would apply, and it committed to eliminating nearly all of its trade barriers for imports of American goods. Earlier, Trump announced that Vietnam's exports would face a 20% tariff, with double that rate for goods transshipped from China, though there has been no formal announcement. Negotiations with China are subject to an Aug. 12 deadline, but it's likely to be extended, Bessent told Fox Business on Tuesday. He said the two sides were due to hold another round of talks, this time in Sweden, early next week. Meanwhile, Trump said a trip to China may happen soon, hinting at efforts to stabilize US-China trade relations. A preliminary agreement announced in June paved the way for China to lift some restrictions on its exports of rare earths, minerals critical for high technology and other manufacturing. In May, the US agreed to drop Trump's 145% tariff rate on Chinese goods to 30% for 90 days, while China agreed to lower its 125% rate on US goods to 10%. The reprieve allowed companies more time to rush to try to beat the potentially higher tariffs, giving a boost to Chinese exports and alleviating some of the pressure on its manufacturing sector. But prolonged uncertainty over what Trump might do has left companies wary about committing to further investment in China. Pressure is mounting on some countries in Asia and elsewhere as the Aug. 1 deadline for striking deals approaches. Trump sent letters, posted on Truth Social, outlining higher tariffs some countries will face if they fail to reach agreements. He said they'd face even higher tariffs if they retaliate by raising their own import duties. South Korea's is set at 25%. Imports from Myanmar and Laos would be taxed at 40%, Cambodia and Thailand at 36%, Serbia and Bangladesh at 35%, South Africa and Bosnia and Herzegovina at 30% and Kazakhstan, Malaysia and Tunisia at 25%. The status of talks with India remains unclear but progress appears to hinge on the country's heavily protected farm sector. It faces a 26% tariff. Nearly every country has faced a minimum 10% levy on goods entering the U.S. since April, on top of other sectoral levies. Even after Trump has pulled back from the harshest of his threatened tariffs, the onslaught of uncertainty and higher costs for both manufacturers and consumers has raised risks for the regional and global economy. Economists have been downgrading their estimates for growth in 2025 and beyond. The Asian Development Bank said Wednesday it had cut its growth estimate for economies in developing Asia and the Pacific to 4.7% in 2025 and 4.6% in 2026, down 0.2 percentage points and 0.1 percentage points. The outlook for the region could be further dimmed by an escalation of tariffs and trade friction, it said. "Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices,' as well as a deterioration in China's ailing property market. Economists at AMRO were less optimistic, expecting growth for Southeast Asia and other major economies in Asia at 3.8% in 2025 and 3.6% next year. While countries in the region have moved to protect their economies from Trump's trade shock, they face significant uncertainties, said AMRO's chief economist, Dong He. "Uneven progress in tariff negotiations and the potential expansion of tariffs to additional products could further disrupt trade activities and weigh on growth for the region,' he said. - AP

The magic shrinks: Toy industry trims the fun as China tariffs squeeze margins
The magic shrinks: Toy industry trims the fun as China tariffs squeeze margins

Malay Mail

time4 hours ago

  • Malay Mail

The magic shrinks: Toy industry trims the fun as China tariffs squeeze margins

NEW YORK, July 24 — This holiday season, US parents may have to make an extra pit stop — not for toys, but for the batteries that power them, as manufacturers pare down on frills and packaging to cut costs amid rising tariffs. Toy makers that serve retail giants like Walmart, Target and Amazon are reducing the number of accessories in toy kitchen sets, removing batteries from electronic playsets, simplifying doll makeup and reducing packaging, as a 30 per cent blanket tariff currently imposed on Chinese imports puts a damper on their bottom lines. The duties imposed on China by US President Donald Trump are particularly painful for companies like Hasbro and Mattel, as 80 per cent of toys sold in the US come from China, according to trade group The Toy Association. Educational toy maker Popular Playthings — whose China-made animal sets, trucks, and magnetic food sets can be bought on Amazon — is delaying and paring down a magnetic cake set it had planned to launch in June, CEO Jason Cheung said in an interview. The company is reducing the power of the magnet, using cheaper packaging, and removing one of two serving plates that were to come with the set — all while upping the price from US$29.99 (RM126.49) to US$34.99. 'Originally it would come with two plates so two kids can have cake at the same time,' Cheung said. Now, 'one (child) will serve, while the other can eat.' 'Still multiplayer, but less cost,' Cheung said, while adding 'the original item would have been better.' Toys are a top category in the US holiday shopping season, the biggest spending season of the year. Adobe Analytics projected an US$8.1 billion online spend on toys last holiday season, marking a 5.8 per cent increase from the previous year. Toy maker Basic Fun!, which sources most of its products from China, makes 40 per cent of its annual sales in North America through Amazon, meaning the company can't risk removing merchandise from the ubiquitous e-commerce platform this holiday season, CEO Jay Foreman told Reuters. The company, which also sells to Walmart and Target, is offering retailers the option to remove batteries from the packages of its electronic toys, and plans to reduce or remove its toys' packaging in 2026, said Foreman. 'The consumer will either pay more or get less value,' Foreman said. Some companies, like Bratz and L.O.L. Surprise! dolls-maker MGA Entertainment, are moving supply chains out of China, — a costly endeavour — while others are reducing the number of items available on shelves this winter. Isaac Larian, the CEO of MGA Entertainment, one of the biggest US privately-held toy companies, said it takes nine to 12 months to make cost-cutting changes to toys. MGA is planning to modify its products for later next year. 'But we cannot take the magic out of the box,' Larian said. 'Too much cost-cutting, destroys the play value for the toy, and you turn off the kids.' Historically, sector giant Mattel has invested in more 'playable packaging' — making the boxes part of the game itself — to reduce costs. Hasbro, which sources roughly 50 per cent of its US toy and game volume from China, said on a Wednesday earnings call it 'retooled and reimagined' its board games Candy Land and Operation, as part of a larger initiative to revamp its materials sourcing, manufacturing processes, designs and packaging to help with cost reductions amid tariffs. ECR4Kids — whose roughly 1,000 school and daycare supplies range from toys and games to bookshelves and play mats — also sources primarily from China, and makes 'well over 50 per cent' of its revenue from selling wholesale to Amazon, according to managing partner Lee Siegel. 'We're very tethered to Amazon,' Siegel told Reuters, explaining that he can't make substantive changes to the products he sells on the platform, including a US$175 foam climbing set for toddlers. For some products, though, the company is reducing variations in color and model, and prioritizing more efficient packaging that uses every inch of space. These kinds of efficiency efforts were on Siegel's radar even before tariffs, he said. 'But now, you really have no choice.' — Reuters

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store