Wall St holds firm after strong GDP report; Fed, tech earnings in focus
At 09:43 a.m., the Dow Jones Industrial Average rose 1.42 points to 44,632.50, the S&P 500 gained 7.20 points,or 0.11%, to 6,378.06 and the Nasdaq Composite gained 47.19 points, or 0.22%, to 21,145.48.
U.S. economic growth rebounded in the second quarter, beating expectations, but the reality remains grim as most of the boost came from waning imports, while domestic demand only inched higher.
'The market's taking some reassurance from the headline number, but the more you dig into it, the more concerned thatyou get,' said Ben Laidler, head of equity strategy at Bradesco BBI.
'It puts the Fed in a tougher position, with the rise coming in higher than expected. There's a huge amount of tariff noise in this reading.'
Following the data, traders dialed back their bets on a September Fed rate cut, with the odds slipping to 57% from 64%, according to CME's FedWatch tool.
While analysts anticipate little drama from the Fed decision, investors will be parsing Chair Jerome Powell's comments for any hints on future policy direction, especially as the central bank navigates political pressure and assesses the effects of tariffs on inflation.
Wall Street swings to losses as earnings weigh
The latest ADP report showed private payrolls grew by 104,000 in July, topping forecasts of 75,000, ahead of Friday's all-important nonfarm payrolls release.
Investors are now placing their bets on results from megacaps to steer Wall Street to new highs. Microsoft and Meta Platforms will report their results after the market closes, while Amazon and Apple will report on Thursday.
A burst of upbeat earnings from consumer favorites underscored the resilience of American shoppers.
Starbucks posted better-than-expected third-quarter sales, but its shares slipped 1.3%.
Hershey gained 4% on results that topped forecasts. VF Corp, parent of Vans, jumped 22%, while Kraft Heinz was largely steady after both companies beat quarterly revenue estimates, adding to the consumer-driven rally.
Still, caution crept into markets after U.S. President Donald Trump slapped a 25% tariff on Indian imports starting August 1, vowing no deadline extensions for trading partners without a deal in place.
Meanwhile, U.S.-China trade talks wrapped up with both sides seeking to extend their tariff truce, leaving the final call in Trump's hands.
South Korea was also lobbying to secure a trade deal ahead of Trump's August 1 deadline as its officials met U.S. Commerce Secretary Howard Lutnick in Washington.
Among other earnings moves, Humana gained 10% after the health insurer raised its annual profit forecast.
Global payments processing company Visa fell 2.3%, despite beating estimates for third-quarter earnings, as it kept its annual net revenue growth forecast unchanged.
Declining issues outnumbered advancers by a 1.18-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.22-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and four new lows, while the Nasdaq Composite recorded 25 new highs and 39 new lows.
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Express Tribune
an hour ago
- Express Tribune
Pakistan hit with 19pc tariff as Trump targets dozens of countries with new duties
A U.S. flag flutters near shipping containers as a ship is unloaded at the Port of Los Angeles, in San Pedro, California, U.S., May 1, 2025. REUTERS/Mike Blake/ File Photo Listen to article Pakistan will face a 19 per cent tariff on its exports to the United States, according to an executive order issued as US President Donald Trump's tariff deadline ends August 1. President Donald Trump also slapped steep tariffs on exports from dozens of trading partners including Canada, Brazil, India and Taiwan, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline. The revised tariff for Pakistan, down from the previous 29pc, was announced a day after the US and Pakistan finalised a trade agreement in Washington. Yesterday, a new deal between the United States and Pakistan for the joint development of Pakistan's oil reserves was announced by Donald Trump. In a post on his social media platform, Truth Social, President Trump stated: 'We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves.' He added that the US is in the process of selecting a company to lead the initiative. 'Who knows, maybe they'll be selling oil to India someday!' he remarked. Trump imposed an August 1 deadline for dozens of nations to strike trade deals with the US or face tariffs heightened well above the 10% baseline he had already rolled out. According to an executive order, Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland. The order listed higher import duty rates of 10% to 41% starting in seven days for 69 trading partners as of 12:01 a.m. EDT (0401 GMT) deadline approached. Some of them had reached tariff-reducing deals; others had no opportunity to negotiate with his administration. Trump included an exception for some goods shipped within the coming week. Goods from all other countries not listed would be subject to a 10% US import tax. Trump had previously said that rate might be higher. The administration also teased that more trade deals were in the pipeline as it seeks to close trade deficits and boost domestic factories. Facing a Friday deadline of his making, the Republican president has tapped emergency powers, pressured foreign leaders, and pressed ahead with trade policies that sparked a market sell-off when they were first announced in April. This time, markets had a more muted reaction. Stocks and equity futures fell modestly in Friday morning trading in Asia. Trump's order said that some trading partners, "despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters." Other details are still to come, including on the "rules of origin" that will determine what products might face even higher tariffs. Trump also said "we have made a few deals today that are excellent deals for the country," and a US official later told reporters that they were still to be announced. Canada and Mexico Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35%, from 25% previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. The higher tariffs on Canadian goods contrasted sharply with Trump's decision to grant Mexico a 90-day reprieve from higher tariffs of 30% on many goods to provide more time to negotiate a broader trade pact. Trump complained to reporters earlier that Canada had "been very poorly led." Canada's government did not immediately comment but it has previously disputed there being any basis for the tariffs. The extension for Mexico avoids a 30% tariff on most Mexican non-automotive and non-metal goods compliant with the US-Mexico-Canada Agreement on trade and came after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum. India discord Goods from India appeared to be headed for a 25% tariff after talks bogged down over access to India's agriculture sector, drawing a higher-rate threat from Trump that also included an unspecified penalty for India's purchases of Russian oil. Although negotiations with India were continuing, New Delhi vowed to protect the country's labor-intensive farm sector, and the threat of higher rates from Trump triggered outrage from the opposition party and a slump in the rupee. Trump's rollout of higher import taxes on Friday comes amid more evidence they have begun driving up consumer goods prices. Commerce Department data released Thursday showed prices for home furnishings and durable household equipment jumped 1.3% in June, the biggest gain since March 2022. Recreational goods and vehicles prices shot up 0.9%, the most since February 2024. Prices for clothing and footwear rose 0.4%.
Business Recorder
an hour ago
- Business Recorder
Rally continues at PSX as US lowers tariff on Pakistan to 19%
Buying momentum continued at the Pakistan Stock Exchange (PSX) on Friday as investors celebrated the reduction in US reciprocal tariffs on Pakistan, with the benchmark KSE-100 Index gaining over 200 points during early trading. At 10:15am, the benchmark index was hovering at 139,605.26 level, an increase of 214.84 points or 0.15%. Buying was observed in key sectors including cement, commercial banks, fertiliser, oil and gas exploration companies and OMCs. Index-heavy stocks, including MARI, OGDC, SNGPL, SSGC and FFC traded in the green. In a key development, the US administration imposed a 19% reciprocal tariff on a wide range of Pakistani goods, significantly lower than the initially proposed 29%, under a sweeping new executive order signed by President Donald Trump. Late on Thursday, President Trump signed an executive order imposing tariffs ranging from 10% to 41% on US imports from dozens of countries and foreign locations. Rates were set at 25% for India's US-bound exports, 20% for Taiwan's, 19% for Thailand's and 15% for South Korea's. He also increased duties on Canadian goods to 35% from 25% for all products not covered by the US-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal. On Thursday, PSX roared back to life as bullish momentum dominated the trading floor. This sharp surge came on the heels of a surprise tweet by US President Donald Trump, who announced what he described as a historic trade deal with Pakistan. The benchmark KSE-100 Index went up by a remarkable 978 points, equivalent to a 0.71% increase, to close at 139,390.42 points. Internationally, Asian shares fell on Friday after the US slapped dozens of trading partners with steep tariffs, while investors anxiously await US jobs data that could make or break the case for a Fed rate cut next month. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%, bringing the total loss this week to 1.8%. South Korea's KOSPI plunged 3% while Taiwanese shares fell 0.9%. Japan's Nikkei dropped 0.4%. Chinese blue chips were flat and Hong Kong's Hang Seng index eked out a small gain of 0.2%. EUROSTOXX 50 futures slipped 0.2%. Both Nasdaq futures and S&P 500 futures eased 0.2% after earnings from Amazon failed to live up to lofty expectations, sending its shares tumbling 6.6% after hours.
Business Recorder
an hour ago
- Business Recorder
US official says differences with India cannot be resolved overnight for deal
WASHINGTON: Differences between the U.S. and India cannot be resolved overnight to arrive at a trade deal, a senior U.S. official told reporters late on Thursday, citing geopolitical disagreements. Why it's important President Donald Trump said on Wednesday Washington was still negotiating with India on trade after announcing earlier that day the U.S. would impose a 25% tariff on goods imported from the country starting on Friday. Trump says US does very little business with India, almost none with Russia The 25% figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries, undermining a strategic partner of Washington's and a counterbalance to China. Key quotes 'Our challenges with India, they've always been a pretty closed market… there are a host of other kind of geopolitical issues,' the U.S. official said. 'You've seen the president express concern about, you know, membership in BRICS, purchases of Russian oil and that kind of thing.' While saying there were constructive discussions with India, the official added: 'These are complex relationships and complex issues, and so I don't think things can be resolved overnight with India.' Context India has faced pressure from the West, including the U.S., to distance itself from Moscow after Russia invaded Ukraine in early 2022. New Delhi resisted that pressure, citing its longstanding ties with Russia and its economic needs. Trump has cast the BRICS group of developing nations - of which India is a key part - as hostile to the US. Those nations have dismissed that accusation and the group says it promotes the interests of its members and of developing countries at large. Trump has also drawn India's frustration by repeatedly taking credit for an India-Pakistan ceasefire that he announced on social media on May 10.
