Wall Street's rally slows as more CEOs talk about uncertainty because of Trump's trade war
The S&P 500 was 0.2% higher in early trading, though the majority of stocks within it were falling. The Dow Jones Industrial Average was down 10 points, or less than 0.1% , as of 9:40 a.m. Eastern time, and the Nasdaq composite was 0.3% higher.
Intel weighed on the market after the chip company said it's seeing 'elevated uncertainty across the industry' and gave a forecast for upcoming revenue and profit that fell short of analysts' expectations. Its stock fell 7.6% even though its results for the beginning of the year topped expectations.
Eastman Chemical fell 4.3% after it gave a forecast for profit this spring that fell short of analysts' expectations. CEO Mark Costa said that the 'macroeconomic uncertainty that defined the last several years has only increased' and that future demand for its products 'is unclear given the magnitude and scope of tariffs.'
They're the latest companies to say the uncertainty created by President Donald Trump's trade war is making it difficult to give financial forecasts for the upcoming year.
Stocks had rallied earlier in the week on signals that Trump may be softening his approach on tariffs and his criticism of the Federal Reserve, which had earlier shaken markets. The hope is that if Trump can roll back some of his stiff tariffs, he could avert a recession that many investors see as otherwise likely.
But Trump's on-again-off-again tariffs may nevertheless be pushing households and businesses to freeze plans on spending and long-term investment because of how quickly conditions can change, sometimes seemingly by the hour.
Skechers U.S.A., the shoe and apparel company, pulled its financial forecasts for the year due to 'macroeconomic uncertainty stemming from global trade policies,' for example. That was even though it just reported a record quarter of revenue at $2.41 billion. Its stock fell 3.4%.
Helping to keep Wall Street's losses in check was Alphabet, which rose 3.1%. Google's parent company reported late Thursday that its profit soared 50% in the first quarter.
Alphabet is one of the biggest U.S. companies on Wall Street in terms of size, and that gives movements for its stock extra heft on the S&P 500 and other indexes. It was the strongest single force pushing upward on the S&P 500 and the main reason the index was holding steady.
In stock markets abroad, indexes rose modestly across much of Europe following more mixed movements in Asia. Tokyo's Nikkei 225 jumped 1.9%, but stocks in Shanghai slipped 0.1%.
In the bond market, Treasury yields were easing ahead of a report on sentiment among U.S. consumers. The yield on the 10-year Treasury fell to 4.28% from 4.32% late Thursday. It's been easing since approaching 4.50% earlier this month in a surprising rise that had suggested investors worldwide may be losing faith in the U.S. bond market's reputation as a safe place to park cash.
The U.S. dollar also strengthened against the euro and other rival currencies after its unexpected dip earlier this month rattled investors.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
a minute ago
- Globe and Mail
PMTS Investors Have Opportunity to Join CPI Card Group Inc. Fraud Investigation with the Schall Law Firm
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of CPI Card Group Inc. ('CPI' or 'the Company') (NASDAQ: PMTS) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. CPI announced its Q2 2025 financial results on August 8, 2025. The Company missed analyst estimates for both revenue and earnings per share. The Company also updated its 2025 outlook based on the acquisition of Arroweye Solutions in May 2025. Based on this news, shares of CPI fell by more than 28.8% on the same day. If you are a shareholder who suffered a loss, click here to participate. We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at or by email at bschall@ The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
Calgary Herald
18 minutes ago
- Calgary Herald
Trade partners grow restless waiting for Trump's tariff breaks
Article content Cecilia Malmström, the former European commissioner for trade who's now a nonresident fellow at the Peterson Institute for International Economics, cautioned that any delays may be purely administrative. Article content But 'if nothing happens, there will be huge pressure on the European Commission to retaliate or to act in some way, especially from carmakers in Germany, Italy, France, Sweden and others,' she said. 'There are so many other things that are vague in the EU-US deal — and in the others as well — so it is likely we will see forever negotiations and a lot of filibustering.' Article content At a press briefing on Aug. 14, European Commission spokesperson Olof Gill said Washington and Brussels are finalizing a joint statement. 'The US has made political commitments to us in this respect and we look forward to them being implemented,' he said. Article content Japan's Uncertainty Article content Article content Less than a week before the EU's announcement, the US and Japan clinched a surprise deal on July 22 that lowered across-the-board tariffs and car levies to 15%. So far the broader duties have been implemented but the added tax on autos remains at 25%. Article content Officials in Asia's No. 2 economy are waiting for an executive order from Trump to bring down the car levies, as well as an official directive — like the EU already received — to clarify that the universal tariffs don't stack on top of existing duties. Article content Akazawa has mentioned how a Japanese carmaker is losing ¥100 million ($680,000) every hour due to the tariffs. Article content Last month Nissan Motor Corp. said it foresaw a ¥300 billion hit from the lower tariff rate, down from a previous estimate of ¥450 billion. But Chief Executive Officer Ivan Espinosa has warned of the difficulties in giving an accurate forecast as long as it's unclear when the tariffs will take effect and in what way. Article content Article content Akazawa flew to the US earlier this month to confirm that the US will be adjusting its executive order soon to remove the stacking, and pay back overcharges on tariffs. Neither has yet to materialize. Article content Hyundai, Kia Article content Facing similar questions is South Korea, which announced a trade agreement with Washington on July 31. That pact would impose a 15% tariff on imports to the US, including autos, alongside a $350 billion Korean investment pledge focused on shipbuilding, and $100 billion in energy purchases. Article content The 15% universal tariff took effect earlier this month under Trump's order, but like Japan, the sectoral auto tariff remain at 25%. While South Korea's exports overall have stayed resilient in the first half of the year, thanks to front-loading by companies anticipating higher US tariffs, the value of car shipments to the US fell nearly 17%, and steel exports dropped more than 11%, trade data showed. Article content South Korea's top automaker Hyundai Motor Co. and affiliate Kia Corp. could face as much as $5 billion in additional costs this year even under the new 15% auto tariff, according to Bloomberg Intelligence analyst Joanna Chen. While avoiding a 25% levy will save more than $3 billion, the duty squeezes margins amid softer demand and tighter subsidies, intensifying competition with Japanese automakers, Chen said. Article content Korean President Lee Jae Myung's planned summit with Trump on Aug. 25 — their first meeting since Lee took office in June — will test the durability of the $350 billion investment pledge, as well as their alliance over sensitive issues like defense spending, US troop levels and North Korea policy. Article content 'Just Overwhelmed' Article content For Starmer and the UK, most aspects of the pact have now come into force, including a 10% so-called reciprocal rate that's the lowest among all US trading partners. Yet Trump's 25% tax on British steel still chafes amid the delays in cutting it. Article content Article content Among the issues to resolve is the US's insistence that steel should be melted and poured in the UK in order to qualify. That's a requirement which Tata Steel UK, one of the country's biggest producers, is no longer able to fulfill after closing down its blast furnace last year. Its new electric arc furnace is not due to be ready until late 2027. Article content People familiar with the government's thinking are cautiously optimistic they might be able to secure exemptions to the melt-and-pour rule, whereby steel imported from certain European countries before being further processed in the UK is allowed to qualify as British. Article content 'It's not for lack of trying by the UK government,' said Tim Rutter, director of public affairs at Tata Steel. 'We hear that US departments are just overwhelmed.' Article content A spokesperson for the UK Department for Business and Trade said officials will continue to work with Washington to implement the deal as soon as possible. Article content Article content Late on Friday in Washington, the US Customs and Border Protection agency issued new inclusions to steel and aluminum product lists for tariffs that take effect Monday, with some of the guidance affecting imports from the UK. Article content Japan's Akazawa acknowledged that even with the UK, actual implementation of key parts of their deal took 54 days. As a result, he's said that it's 'not bad' if an executive order from the US comes by around mid-September. Article content 'It's just further confirmation that negotiations never really end,' especially with more US tariffs coming for sectors including pharmaceuticals and semiconductors, said Sam Lowe, a partner at Flint Global in London and head of its trade and market access practice.
Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
British horseracing to go on strike in protest against rise in betting taxes
LONDON (AP) — British horseracing will stage an unprecedented one-day strike on Sept. 10 to protest a proposed rise in taxes on race betting. The four scheduled meetings that day — at Carlisle, Uttoxeter, Lingfield and Kempton — will not take place after agreements between the owners of the courses and the British Horseracing Authority, making it the first time the sport in Britain has voluntarily refused to race in modern history. The BHA set up the 'Axe the Racing Tax' campaign in response to proposals to replace the existing three-tax structure of online gambling duties with a single tax, with fears the current 15% duty on racing could be increased to the 21% levied on games of chance. Brant Dunshea, chief executive at the British Horseracing Authority, said the strike intends to 'highlight to (the) government the serious consequences of the treasury's tax proposals which threaten the very future of our sport.' 'British racing is already in a precarious financial position and research has shown that a tax rise on racing could be catastrophic for the sport and the thousands of jobs that rely on it in towns and communities across the country,' Dunshea said. 'This is the first time that British racing has chosen not to race due to government proposals. We haven't taken this decision lightly but in doing so we are urging the government to rethink this tax proposal to protect the future of our sport which is a cherished part of Britain's heritage and culture.' The British government said it was bringing the 'treatment of online betting in line with other forms of online gambling to cut down bureaucracy.' 'It is not about increasing or decreasing rates,' the government said, 'and we welcome views from all stakeholders including businesses, trade bodies, the third sector and individuals.' ___ AP sports:
