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The Star
4 days ago
- Business
- The Star
U.S. stocks close higher despite trade headwinds
NEW YORK, June 2 (Xinhua) -- U.S. stocks ended higher on Monday, as investors appeared to look past renewed global trade tensions. The Dow Jones Industrial Average rose 35.41 points, or 0.08 percent, to 42,305.48. The S&P 500 added 24.25 points, or 0.41 percent, to 5,935.94. The Nasdaq Composite Index increased 128.85 points, or 0.67 percent, to 19,242.61. Ten of the 11 primary S&P 500 sectors ended in green, with energy and technology leading the gainers by adding 1.15 percent and 0.89 percent, respectively. Meanwhile, industrials bucked the trend by losing 0.24 percent. The United States has seriously undermined the consensus reached during the China-U.S. economic and trade talks in Geneva by successively introducing multiple discriminatory restrictive measures against China, China's Ministry of Commerce said Monday. These measures included issuing guidance on AI chip export controls, halting sales of chip design software to China, and announcing the revocation of visas for Chinese students, according to a spokesperson for the ministry. Meanwhile, friction with the European Union intensified after U.S. President Donald Trump announced plans to double tariffs on imported steel to 50 percent. In response, an EU spokesperson warned the move could derail ongoing negotiations, stating "this decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." "Markets see the latest round of tariff threats and ramped up rhetoric against China, the EU, and steel as nudges to move negotiations towards the finish line," said Jamie Cox, managing partner at Harris Financial Group. U.S. stocks entered June cautiously after a strong May rally, during which the S&P 500 jumped more than 6 percent, marking its best month since November 2023 and the strongest May performance since 1990. Despite fears that new tariffs could trigger inflation, Federal Reserve Governor Christopher Waller said Monday that any price increases are likely to be short-lived. He added that this scenario could give the Fed room to make "positive" rate cuts in 2025. "I support looking through any tariff effects on near term-inflation when setting the policy rate," he said. As earnings season winds down, a few notable companies are still set to report this week, including CrowdStrike, Broadcom, DocuSign, and Lululemon. Looking ahead, markets are closely watching key economic data set for release this week, especially Friday's May nonfarm payrolls report, which could shed light on how ongoing trade disputes and shifting interest rate expectations are affecting the broader U.S. economy. On Monday, new data from the Institute for Supply Management showed continued contraction in the U.S. manufacturing sector, with imports falling to their lowest level since 2009.
Economic Times
16-05-2025
- Business
- Economic Times
Asian stocks, bonds climb as trade-truce rally holds
Live Events Stock Rally (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Asian equities followed Wall Street higher in a sign the stock market rally has further to run. Treasuries advanced on Thursday as traders priced in two Federal Reserve rate cuts this in South Korea and Australia climbed early Friday, while Japan's were mixed. US futures inched higher after the S&P 500 rose 0.4% Thursday. Canada's stock benchmark hit a record with an eight-day still lurked in the background after a furious rally spurred worries about an overheated market, with the pendulum swinging in favor of defensive dividend-payers that had underperformed in the past month. Meta Platforms Inc. paced losses in big tech on a news report it was delaying the rollout of a flagship AI model. In late hours, Applied Materials Inc. gave a tepid forecast. And Alibaba Group Holding Ltd.'s quarterly revenue grew a disappointing 7%, reflecting pressure on Chinese were steady in Asian trading on Friday after a Thursday rally as prices paid to US producers unexpectedly declined by the most in five years suggesting companies are absorbing some of the hit from higher tariffs. Australian and New Zealand yields US economic data showed growth in retail sales decelerated. Factory production declined for the first time in six months while New York state manufacturing contracted again. And confidence among homebuilders slumped.'If you are in the stagflation camp, these data aren't confirming your thesis,' said Jamie Cox at Harris Financial Group. 'While growth is slowing, disinflation remains intact.'The bond rally on Thursday sent yields down 10 basis points or more for debt maturing in two to 10 years. Longer-dated bonds were earlier whipsawed by large trades that briefly pushed the 30-year yield to nearly 5%. A dollar gauge lost 0.2% Thursday and was flat early Friday.'Bad news is good news for the bond market' as Thursday's data — including producer prices and retail sales — pointed to a weaker economy, said Zachary Griffiths, head of investment-grade and macroeconomic strategy at CreditSights Asia, US President Donald Trump said India had made an offer to drop tariffs on US goods, as the Asian nation negotiates a deal to avert higher import taxes. India was one of the first countries to begin trade negotiations with the US following Prime Minister Narendra Modi's visit to the White House in Japan's economy shrank for the first time in a year, illustrating its vulnerability even before sustaining the impact of Trump's tariff measures. The yen gained 0.2% on Friday to trade around 145 per data set for release in the region includes gross-domestic product for Malaysia and Hong Kong, inflation expectations for New Zealand and international reserves for Thailand. Bank of Japan official Toyoaki Nakamura will speak later in the are now trading like last month's rout never happened. The S&P 500 is about 4% away from an all-time high, while the Nasdaq 100 swung from a bear market back into a bull market. The advance is building as economic tensions between the US and China ease and the White House appears to be softening its approach to trade negotiations.'I don't want to get too excited, but we may actually be able to focus on company fundamentals for a while this summer,' said Lamar Villere, portfolio manager at Villere & Co. 'If you'd told me a month ago that stocks would be up year-to-date when my kids finished their exams, I'd have called you a liar.'Still, there's little clarity over how the existing levies might impact the US economy or the trajectory the global trade war will take in coming Governor Michael Barr said the economy is on solid ground, but warned tariff-related supply-chain disruptions could lead to lower growth and higher remains a possibility as tariff fallout continues to buffet global economies, according to JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon.'Hopefully we'll avoid it, but I wouldn't take it off the table at this point,' Dimon said in a Bloomberg Television interview Thursday at JPMorgan's annual Global Markets Conference in Paris. 'If there is a recession, I don't know how big it would be or how long it would last.'Wells Fargo Investment Institute sees economic growth, clarity around Trump's tariffs and continued earnings growth driving further stock-market gains through the rest of this year and commodities, oil rebounded on Friday after slumping in its previous session as President Donald Trump said the US and Iran are getting closer to a deal regarding Tehran's nuclear program. Gold was little changed.
Time of India
16-05-2025
- Business
- Time of India
Asian stocks, bonds climb as trade-truce rally holds
Live Events Stock Rally (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Asian equities followed Wall Street higher in a sign the stock market rally has further to run. Treasuries advanced on Thursday as traders priced in two Federal Reserve rate cuts this in South Korea and Australia climbed early Friday, while Japan's were mixed. US futures inched higher after the S&P 500 rose 0.4% Thursday. Canada's stock benchmark hit a record with an eight-day still lurked in the background after a furious rally spurred worries about an overheated market, with the pendulum swinging in favor of defensive dividend-payers that had underperformed in the past month. Meta Platforms Inc. paced losses in big tech on a news report it was delaying the rollout of a flagship AI model. In late hours, Applied Materials Inc. gave a tepid forecast. And Alibaba Group Holding Ltd.'s quarterly revenue grew a disappointing 7%, reflecting pressure on Chinese were steady in Asian trading on Friday after a Thursday rally as prices paid to US producers unexpectedly declined by the most in five years suggesting companies are absorbing some of the hit from higher tariffs. Australian and New Zealand yields US economic data showed growth in retail sales decelerated. Factory production declined for the first time in six months while New York state manufacturing contracted again. And confidence among homebuilders slumped.'If you are in the stagflation camp, these data aren't confirming your thesis,' said Jamie Cox at Harris Financial Group. 'While growth is slowing, disinflation remains intact.'The bond rally on Thursday sent yields down 10 basis points or more for debt maturing in two to 10 years. Longer-dated bonds were earlier whipsawed by large trades that briefly pushed the 30-year yield to nearly 5%. A dollar gauge lost 0.2% Thursday and was flat early Friday.'Bad news is good news for the bond market' as Thursday's data — including producer prices and retail sales — pointed to a weaker economy, said Zachary Griffiths, head of investment-grade and macroeconomic strategy at CreditSights Asia, US President Donald Trump said India had made an offer to drop tariffs on US goods, as the Asian nation negotiates a deal to avert higher import taxes. India was one of the first countries to begin trade negotiations with the US following Prime Minister Narendra Modi's visit to the White House in Japan's economy shrank for the first time in a year, illustrating its vulnerability even before sustaining the impact of Trump's tariff measures. The yen gained 0.2% on Friday to trade around 145 per data set for release in the region includes gross-domestic product for Malaysia and Hong Kong, inflation expectations for New Zealand and international reserves for Thailand. Bank of Japan official Toyoaki Nakamura will speak later in the are now trading like last month's rout never happened. The S&P 500 is about 4% away from an all-time high, while the Nasdaq 100 swung from a bear market back into a bull market. The advance is building as economic tensions between the US and China ease and the White House appears to be softening its approach to trade negotiations.'I don't want to get too excited, but we may actually be able to focus on company fundamentals for a while this summer,' said Lamar Villere, portfolio manager at Villere & Co. 'If you'd told me a month ago that stocks would be up year-to-date when my kids finished their exams, I'd have called you a liar.'Still, there's little clarity over how the existing levies might impact the US economy or the trajectory the global trade war will take in coming Governor Michael Barr said the economy is on solid ground, but warned tariff-related supply-chain disruptions could lead to lower growth and higher remains a possibility as tariff fallout continues to buffet global economies, according to JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon.'Hopefully we'll avoid it, but I wouldn't take it off the table at this point,' Dimon said in a Bloomberg Television interview Thursday at JPMorgan's annual Global Markets Conference in Paris. 'If there is a recession, I don't know how big it would be or how long it would last.'Wells Fargo Investment Institute sees economic growth, clarity around Trump's tariffs and continued earnings growth driving further stock-market gains through the rest of this year and commodities, oil rebounded on Friday after slumping in its previous session as President Donald Trump said the US and Iran are getting closer to a deal regarding Tehran's nuclear program. Gold was little changed.
Epoch Times
15-05-2025
- Business
- Epoch Times
US Wholesale Inflation Registers Largest Drop Since Pandemic
Wholesale inflation in April recorded the sharpest drop since the onset of the COVID-19 pandemic, signaling that U.S. tariffs have yet to impact consumers. Last month, the producer price index (PPI)—a gauge of prices for goods and services paid by businesses early in the supply chain—fell by 0.5 percent, down from the upwardly adjusted zero percent recorded in March. The consensus forecast suggested a 0.2 percent increase. According to May 15 data released by the Core wholesale prices, which omit the volatile energy and food categories and are considered a more accurate inflation predictor, also declined by 0.4 percent in April. This was down from March's upwardly revised 0.4 percent increase and lower than economists' expectations. Core PPI inflation eased to 3.1 percent from 4 percent year over year, in line with market watchers' projections. Related Stories 5/14/2025 5/9/2025 Economists monitor the PPI closely as it can signal pipeline inflation. The Federal Reserve watches producer prices closely as they contribute to the personal consumption expenditure (PCE) price index, the central bank's preferred inflation report. Later this month, PCE inflation is expected to come in at 2.2 percent, according to the Cleveland Fed's Inflation Nowcasting model estimate. This comes after the The annual inflation rate slowed to a smaller-than-expected 2.3 percent, the lowest level since February 2021. Core CPI inflation was unchanged at 2.8 percent. Despite growing stagflation fears—an economic climate of higher prices, rising unemployment, and slowing growth—these numbers should dissipate worries, said Jamie Cox, a managing partner for Harris Financial Group. 'If you are in the stagflation camp, these data aren't confirming your thesis. While growth is slowing, disinflation remains intact,' Cox said in a note emailed to The Epoch Times. Inflation Watch While the latest influx of data suggests that higher inflation has yet to materialize, a chorus of economists says that potential adverse effects of tariffs could begin to show up in the hard data in the second half of 2025. 'Pauses and deals aside, the reality is that tariff rates are higher and some portion of that will stick, meaning that over coming months the data on goods prices will likely tell a more convincing, and consistent, story about the impact on retail-level prices,' Richard Moody, chief economist at Regions Financial Corporation, said in a Other economic observers say that inflation will likely reaccelerate, though the outcome could be less dire than initially reported. 'Inflation looks likely to pick up in the second half of 2025 as businesses pass on the cost of tariffs,' Bill Adams, chief economist at Comerica Bank, said in a note emailed to The Epoch Times. 'But after cuts to the tariff rates applied to most imports, the effect will be smaller than it appeared a few weeks ago.' Tariff-related price pressures might be more 'manageable' than expected for businesses and consumers, Adams noted. BNP Paribas economists recently said that U.S. inflation will start 'to rise noticeably' in the third quarter. In an April 28 research Echoing the sentiment of Federal Reserve Chair Jerome Powell, they said tariff-driven price pressures could be temporary. A customer shops at a Walmart store in Houston, Texas, on Aug. 4, 2021.'It should be transitory, provided that the trade war de-escalates, the Fed does not cut rates prematurely and/or its independence is not called into question,' they wrote. 'All of this would allow household inflation expectations to fall from their current high levels and prevent them from becoming self-fulfilling.' A plethora of consumer surveys have highlighted households' growing consternation surrounding a possible inflation revival. The University of Michigan's April Consumer Sentiment Index highlighted the one- and five-year inflation outlooks climbing to 6.5 percent and 4.4 percent, respectively. In addition, the New York Fed's March and April These concerns could be justified based on recent statements from Corporate America. Several major companies have said they plan to raise prices in the coming months amid the blowback from tariffs. Walmart, which reported a drop in first-quarter profits in its latest earnings report, says it will have to absorb tariff costs. 'We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren't able to absorb all the pressure given the reality of narrow retail margins,' Walmart CEO Doug McMillon said in a May 15 Last month, tool maker Stanley Black & Decker said it increased prices by high single digits across U.S. retailers and plans to introduce another round of hikes later this year. 'In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come,' Stanley Black & Decker CEO Donald Allan said in an April 30 'With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required.' What This Means for the Fed The wave of positive economic data has prompted investors to push back their interest rate forecasts. According to the With the higher-than-expected retail sales data in April—sales rose by 0.1 percent, and March numbers were revised higher to 1.7 percent—monetary policymakers will likely sit on the sidelines, says Jeffrey Roach, chief economist for LPL Financial. 'Steady consumer incomes should support discretionary spending, adding to the likelihood that the Fed can stay on hold as long as growth prospects remain stable,' Roach said in a note emailed to The Epoch Times. In prepared remarks on May 15, Powell said that long-term interest rates will likely be higher amid policy uncertainty and economic changes. 'Higher real rates may also reflect the possibility that inflation could be more volatile going forward than in the inter-crisis period of the 2010s,' Powell said at the Thomas Laubach Research Conference in Washington. 'We may be entering a period of more frequent, and potentially more persistent, supply shocks—a difficult challenge for the economy and for central banks.'
Yahoo
15-05-2025
- Business
- Yahoo
Stocks Bounce as Bond Yields Sink on Fed-Cut Bets: Markets Wrap
(Bloomberg) -- Wall Street traders sent bond yields lower as stocks bounced after tame inflation data combined with lackluster readings on retail sales and manufacturing bolstered the case for Federal Reserve rate cuts this year. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Power-Hungry Data Centers Are Warming Homes in the Nordics Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NYC Commuters Brace for Chaos as NJ Transit Rail Strike Looms Treasuries rose across the curve, with the move led by shorter-term maturities. Money markets reflected slightly higher bets on at least two Fed reductions in 2025. The S&P 500 wiped out losses as Cisco Systems Inc. surged on a solid forecast, though big tech remained under pressure. Walmart Inc. fell after warning that increasing economic turbulence means the world's largest retailer expects to begin raising some prices. Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms. Prices paid to US producers unexpectedly declined by the most in five years suggesting companies are absorbing some of the hit from higher tariffs. Growth in retail sales decelerated notably. Factory production declined for the first time in six months while New York state manufacturing contracted again. And confidence among homebuilders slumped. 'If you are in the stagflation camp, these data aren't confirming your thesis,' said Jamie Cox at Harris Financial Group. 'While growth is slowing, disinflation remains intact.' Government debt was whipsawed by a slew of block trades, including a large sale of Ultra Bond futures that sent the 30-year cash Treasury yield to nearly 5% for the first time since April before quickly retreating. Overall, the softer tone of the economic data biased most traders to purchase, with the shorter maturities most desired. Investors have been increasingly wary of buying long-term securities given concern about the US fiscal trajectory. The S&P 500 was little changed. The Nasdaq 100 slid 0.1%. The Dow Jones Industrial Average wavered. UnitedHealth Group Inc. sank 15% on a report it was under criminal investigation for possible Medicare fraud. Foot Locker Inc. soared 85% as Dick's Sporting Goods Inc. reached a $2.4 billion deal to acquire the retailer. The yield on 10-year Treasuries declined eight basis points to 4.46%. The Bloomberg Dollar Spot Index fell 0.2%. Oil slumped as Donald Trump said the US and Iran are getting closer to a deal regarding Tehran's nuclear program. Read: Powell Signals 2020 Fed Framework Language on Chopping Block 'Today's data doesn't change the narrative,' said Ellen Zentner at Morgan Stanley Wealth Management. 'Retail sales suggest consumers are becoming pickier, while there remains no sign of broad-based layoffs. The slowdown in inflation in April provides little comfort as the impact from tariffs is yet to come.' Despite the de-escalation with China, the trade story isn't over, Zentner said, it's still going to take time for tariffs to make themselves felt in economic data. Recession remains a possibility as tariff fallout continues to buffet global economies, according to JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon. 'Hopefully we'll avoid it, but I wouldn't take it off the table at this point,' Dimon said in a Bloomberg Television interview Thursday at JPMorgan's annual Global Markets Conference in Paris. 'If there is a recession, I don't know how big it would be or how long it would last.' In a separate Bloomberg Television interview, Apollo Global Management Inc. President Jim Zelter described the Trump administration's recent tariff pause and de-escalation with China as a 'macro political pivot' that came after a key meeting with US retail executives who warned policymakers of the challenges their proposals were causing on the ground. 'You would have been saying recession went from 30% to 70% or 80%, now it is probably below 50%,' he said. Read: A Trade Made for Buffett: Energy Stocks Priced Below Book Value Mike Mayo remains bullish on the biggest Wall Street banks, saying management teams were mostly upbeat at a recent conference and 'not blinking despite tariff risks.' The Wells Fargo analyst also expects the disconnect between optimistic management and investor concerns to keep narrowing, 'so long as there are no new major trade shocks.' Wells Fargo Investment Institute sees economic growth, clarity around Trump's tariffs and continued earnings growth driving further stock-market gains through the rest of this year and next. Strategists at the firm published new S&P 500 forecast for 2026, expecting US equity benchmark to climb to between 6,400 and 6,600 by year's end. WFII's new 2025 year-end target for gauge is range of 5,900 to 6,100, implying market could stay flat or eke out 3.5% advance. 'Our constructive equity outlook is not an all clear for the riskiest areas of the markets,' the team wrote, emphasizing preference from US large- and mid-cap companies. Equity gains will likely get harder from these elevated levels, so the relatively low cost of volatility hedges on offer right now hands investors an opportunity to build a defense against summer volatility. A retreat in index and single-stock volatility has been accompanied by a decline both in measures of correlation and dispersion. All four gauges are now at or below the levels seen on April 2, before Trump's 'Liberation Day' speech. That suggests markets have fully removed any macro uncertainty premium. 'While we continue to expect a range of trade agreements to be reached to sustain the tariff rate at roughly the level during the pause period, ongoing uncertainty could trigger further bouts of market volatility,' said Solita Marcelli at UBS Global Wealth Management. 'Phasing into the market can be an effective way for under-allocated investors to position for potential medium- and longer-term gains in US equities, while capital preservation strategies can help manage near-term risks of stock market declines.' Meantime, tax-bill discussions in Congress show the US 'appears unwilling' to rein in its fiscal deficit, while foreigners are less inclined to finance it, creating a 'major problem' for the dollar and the bond market, said George Saravelos, Deutsche Bank's global head of currency strategy. 'Running a wider fiscal deficit requires foreigners to buy an ever-expanding amount of US Treasuries and an ongoing rise of America's foreign liabilities,' he wrote. 'This we believe is no longer sustainable.' The dollar's descent is elevating the price of hedging currency trades around the world, breaking up a long-standing market conviction that costs tend to come down when the greenback weakens. The correlation between the dollar and a widely-watched gauge of volatility in Group-of-10 currencies fell to the lowest level in seven years this week. For most of the past 15 years that correlation was positive. Corporate Highlights: President Donald Trump said he's asked Apple Inc.'s Tim Cook to stop building plants in India to make devices for the US, pushing the iPhone maker to add domestic production as it pivots away from China. CoreWeave Inc. has secured a deal worth as much as $4 billion to provide additional cloud computing capacity to artificial intelligence leader OpenAI, expanding a tie-up between the two firms. Deere & Co.'s earnings beat the highest of analyst estimates, even as the world's largest farm machinery maker trimmed its profit outlook for the year. Phillips 66, which is under pressure from Elliott Investment Management to streamline its business, agreed to sell a stake in its German and Austrian fuel station unit for about $1.6 billion. Carvana Co. Chief Executive Officer Ernest Garcia III filed to sell shares worth $192 million as the used-car retailer's stock surged, by far his largest cash-out since the company's initial public offering. Coinbase Global Inc. said hackers bribed contractors or employees outside the US to steal sensitive customer data and demanded a $20 million ransom, in one of the most high-profile security breaches of a crypto trading platform. BlackRock Inc.'s executive pay proposal won preliminary approval from shareholders at its annual meeting, overcoming criticism from Institutional Shareholder Services Inc. that it has been slow to respond to questions about its pay practices. Alibaba Group Holding Ltd.'s quarterly revenue grew a disappointing 7%, reflecting a persistent Chinese consumer malaise that may dog the online commerce leader's big pivot toward AI. Shein Group Ltd. lowered US retail prices this week after the Trump administration temporarily cut duties on Chinese imports, as the online fashion retailer moves to win back consumers scared away by recent tariff-induced price hikes. Some of the main moves in markets: Stocks The S&P 500 was little changed as of 11:13 a.m. New York time The Nasdaq 100 fell 0.1% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 rose 0.4% The MSCI World Index was little changed Bloomberg Magnificent 7 Total Return Index fell 1.1% The Russell 2000 Index fell 0.2% Currencies The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1193 The British pound rose 0.2% to $1.3286 The Japanese yen rose 0.7% to 145.79 per dollar Cryptocurrencies Bitcoin fell 1.4% to $102,114.86 Ether fell 3.4% to $2,512.17 Bonds The yield on 10-year Treasuries declined eight basis points to 4.46% Germany's 10-year yield declined seven basis points to 2.63% Britain's 10-year yield declined five basis points to 4.67% Commodities West Texas Intermediate crude fell 3.1% to $61.21 a barrel Spot gold rose 1% to $3,209.20 an ounce Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Why Obesity Drugs Are Getting Cheaper — and Also More Expensive As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Trump Has Already Ruined Christmas ©2025 Bloomberg L.P. 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