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Business Times
5 hours ago
- Business
- Business Times
US: Stocks mixed as China trade tensions fuel unease
[NEW YORK] Wall Street stocks saw a mixed end to the day on Friday (May 30), as trade tensions between the United States and China heated up with President Donald Trump accusing Beijing of violating a tariff de-escalation deal. The Dow Jones Industrial Average edged up 0.1 per cent to 42,270.07, but the broad-based S&P 500 Index was flat at 5,911.69. The tech-focused Nasdaq Composite Index slipped 0.3 per cent to 19,113.77. 'If it weren't for the trade war, the market would be feeling pretty good,' said Tom Cahill of Ventura Wealth Management. 'Inflation is definitely moving in the right direction,' he added, referencing an inflation gauge that cooled more than expected last month. The Federal Reserve's preferred inflation measure – the personal consumption expenditures price index – rose 2.1 per cent from a year ago, down from the figure in March. 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 But investors remained nervous as Trump took aim at China early Friday, writing on his Truth Social platform that Beijing 'totally violated its agreement with us.' Washington and Beijing had agreed to mutually lower tariffs on each other's imports this month, bringing levels down from triple digits for 90 days. Trump's remarks, however, reignited fears that the president could return to a more confrontational approach towards the world's second biggest economy. Jose Torres, senior economist at Interactive Brokers, said in a note: 'Wall Street is worried that this Friday morning's remarks are just a warmup of what's to come.' AFP
Yahoo
6 hours ago
- Business
- Yahoo
Trump Sees Xi Call Settling Trade Flap Over Rare Earth Exports
(Bloomberg) -- US President Donald Trump expressed confidence a talk with Chinese President Xi Jinping could ease fresh trade tensions, after White House officials vented anger over Beijing's pace of issuing promised export licenses. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Economic Benefits of Paying Workers to Move Where the Wild Children's Museums Are The dust-up threatened to again upend trade relations between the world's two largest economies, which have been held together by a fragile, weeks-old tariff truce. 'They violated a big part of the agreement we made,' Trump told reporters Friday in the Oval Office. 'But I'm sure that I'll speak to President Xi, and hopefully we'll work that out.' It's unclear if Xi would agree to a conversation with Trump. The last known call between the two leaders took place days before the US president's inauguration in January. While Trump didn't explicitly detail his frustrations, US Trade Representative Jamieson Greer earlier Friday accused Beijing of failing to comply with elements of the trade agreement brokered earlier this month in Geneva, and complained that China had not sped exports of critical minerals needed for cutting-edge electronics. 'We haven't seen the flow of some of those critical minerals as they were supposed to be doing,' Greer said. 'China continues to, you know, slow down and choke off things like critical minerals and rare Earth magnets.' Liu Pengyu, a spokesman for the Chinese Embassy in Washington, said the US and China have 'maintained communication over their respective concerns in the economic and trade fields' since the talks in Geneva. But the spokesman also mentioned recent actions the administration had taken against Beijing, underscoring the deepening gulf between the two nations. 'China has repeatedly raised concerns with the US regarding its abuse of export control measures in the semiconductor sector and other related practices. China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva,' he said. Following a rally that put the S&P 500 Index on track for its best May since 1990, the gauge fell as much as 1.2% before nearly wiping out the drop. The latest spat spelled fresh turmoil for the president's trade agenda, which was shaken earlier this week by a federal court ruling that halted the bulk of his tariffs. An appeals court temporarily paused the decision to hear arguments, though it could ultimately back the initial order and block Trump's duties. The developments also signaled that the relative detente reached in Geneva is being tested by a barrage of US actions that had drawn the ire of the Chinese government. Since the deal was struck, the Trump administration has announced that it would start revoking some Chinese student visas, a move that Beijing has blasted as 'discriminatory.' Trump officials have also introduced new restrictions on the sale of chip design software. The New York Times reported the US has also barred the export of critical jet engine parts and technology to China, while Reuters reported that Trump is planning to step up military sales to Taiwan. The Commerce Department's warning earlier this month to companies against using Huawei Technologies Co.'s Ascend artificial-intelligence chips 'anywhere in the world' was seen as provocative enough by China to draw a formal complaint to US officials, the Wall Street Journal reported Friday. As a result, China has continued to stonewall the critical mineral exports, the paper reported. China's position on its rare-earths restrictions were never publicly clarified following the Switzerland agreement, and the country's exporters this month were still seeking clarity from Beijing on whether they're allowed to sell to US buyers. China's curbs apply to all countries, meaning sellers would need to seek individual exemptions, a slower and more complex process than the White House and importers were expecting. Deputy White House chief of staff Stephen Miller told CNN on Friday that the US had 'a broad range of options to hold China accountable' and that future steps would be similar to the crackdown on student visas. 'I'm not going to detail for you right now the entire hand the president is willing to play,' Miller said. 'I will just put it this way, there are measures that have already been taken, there are measures that are being taken.' Miller later told reporters that China needed to act 'as soon as possible' to avoid additional action. 'China did not fulfill the obligations that it made and committed to with the United States, and so that opens up all manner of action for the United States,' he said. Trump's comments come a day after US Treasury Secretary Scott Bessent said that talks with China on trade were underway but had 'stalled.' Bessent suggested that a call between Trump and Xi might be necessary to break the deadlock. 'I think that given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other,' Bessent said in a Fox News interview. The US president said he would speak to the Chinese leader 'maybe at the end of the week' following the Geneva talks — which concluded in mid-May — but that call did not appear to take place. --With assistance from Colum Murphy, Kate Sullivan and Magan Crane. 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Straits Times
6 hours ago
- Business
- Straits Times
US stocks mixed as China trade tensions fuel unease
Traders working on the floor of the New York Stock Exchange, in New York City, on May 30. PHOTO: REUTERS NEW YORK - Wall Street stocks saw a mixed end to the day on May 30, as trade tensions between the United States and China heated up with President Donald Trump accusing Beijing of violating a tariff de-escalation deal. The Dow Jones Industrial Average edged up 0.1 per cent to 42,270.07, but the broad-based S&P 500 Index was flat at 5,911.69. The tech-focused Nasdaq Composite Index slipped 0.3 per cent to 19,113.77. 'If it weren't for the trade war, the market would be feeling pretty good,' said Mr Tom Cahill, of Ventura Wealth Management. 'Inflation is definitely moving in the right direction,' he added, referencing an inflation gauge that cooled more than expected in April. The Federal Reserve's preferred inflation measure – the personal consumption expenditures price index – rose 2.1 per cent from a year ago, down from the figure in March. But investors remained nervous as Mr Trump took aim at China early on May 30, writing on his Truth Social platform that Beijing 'totally violated its agreement with us.' Washington and Beijing had agreed to mutually lower tariffs on each other's imports this month, bringing levels down from triple digits for 90 days. Mr Trump's remarks, however, reignited fears that the president could return to a more confrontational approach towards the world's second biggest economy. Mr Jose Torres, senior economist at Interactive Brokers, said in a note: 'Wall Street is worried that this Friday morning's remarks are just a warmup of what's to come.' AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
RTHK
7 hours ago
- Business
- RTHK
US stocks end mixed after Trump China comments
US stocks end mixed after Trump China comments Traders work on the floor of the New York Stock Exchange. Photo: AFP Wall Street stocks saw a mixed end to the day on Friday, as trade tensions between the United States and China heated up with President Donald Trump accusing Beijing of violating a tariff de-escalation deal. The Dow Jones Industrial Average edged up 0.1 percent to 42,270.07, but the broad-based S&P 500 Index was flat at 5,911.69. The tech-focused Nasdaq Composite Index slipped 0.3 percent to 19,113.77. "If it weren't for the trade war, the market would be feeling pretty good," said Tom Cahill of Ventura Wealth Management. "Inflation is definitely moving in the right direction," he added, referencing an inflation gauge that cooled more than expected last month. The Federal Reserve's preferred inflation measure -- the personal consumption expenditures price index -- rose 2.1 percent from a year ago, down from the figure in March. But investors remained nervous as Trump took aim at China early on Friday, writing on his Truth Social platform that Beijing "totally violated its agreement with us." Washington and Beijing had agreed to mutually lower tariffs on each other's imports this month, bringing levels down from triple digits for 90 days. Trump's remarks, however, reignited fears that the president could return to a more confrontational approach towards the world's second biggest economy. Jose Torres, senior economist at Interactive Brokers, said in a note: "Wall Street is worried that this Friday morning's remarks are just a warmup of what's to come." Liu Pengyu, a spokesperson for China's embassy in Washington, said China has maintained communications on trade matters with US counterparts since the Geneva talks, but raised concerns about US export controls. "Recently, China has repeatedly raised concerns with the US regarding its abuse of export control measures in the semiconductor sector and other related practices," Liu said in a statement. "China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva." (AFP, Reuters)
Miami Herald
9 hours ago
- Business
- Miami Herald
Costco defies tariff shifts with higher profit, lower prices
Costco Wholesale Corp. posted better-than-expected earnings in the third quarter, a sign that the nation's largest club chain is flexing its scale and devoted following to navigate tariffs and economic turbulence. The retailer said it generated earnings per share of $4.28 for the quarter ended May 11, above what Wall Street analysts were expecting. The metric suggests that Costco is maintaining profitability even as consumers prioritize necessities to save money. The shares rose 1.5% at 9:37 a.m. in New York trading Friday. Through Thursday's close, the stock had advanced 10% year to date, outpacing the S&P 500 Index. Costco is the latest big-box retailer to post quarterly results, as investors and analysts search for clues on how shoppers are spending. Many consumer-facing companies have posted soft results in recent weeks with Target Corp., Procter & Gamble Co. and Kraft Heinz Co. slashing their annual outlooks. Walmart Inc. and a handful of names have been outliers with strong results. Sweeping, on-again, off-again U.S. tariffs have upended operations across industries, fueling chaos among companies, investors and consumers. Courts are weighing in on whether these tariffs can stay in effect. "We are basing our decisions really based on what we know" and what's in place at the moment, Chief Financial Officer Gary Millerchip said in an interview, adding that Costco hasn't made changes in response to court orders this week as tariffs are still in effect. "It's difficult to make decisions on items that we just don't know what the outcome will be." At Costco, price increases are expected to hit later in the year as the company starts to sell new inventory. It won't be a "one-size-fits-all" scenario, Millerchip said. The retailer is likely to hold prices of some items steady and raise others. Costco may stop selling certain products if they become too expensive, and timing will also vary for items. In addition to working with suppliers, Costco is rerouting goods sourced from countries with high tariffs to other markets, Chief Executive Officer Ron Vachris said on a call with analysts Thursday. About a third of Costco's U.S. sales come from goods imported from other countries. In the U.S., it's sourcing more locally-produced mattresses, pillows and other items. The retailer also pulled forward some summer products such as sporting goods - an effort that helped Costco keep prices low. Amid tariff-driven cost increases, Costco is examining potential price changes on an item-by-item basis, executives said. For example, it held prices of pineapples and bananas - sourced from Central and South America - but raised those of other goods that are more discretionary. 'Full-force ahead' As commodity costs have dropped in recent months, Costco lowered prices of eggs, butter and other key staples. These deals, and expanding hours for gas services, helped its performance. Still, prices of non-food items rose in the low-single digits for the first time in a number of quarters due to imported goods, executives said. "It's full-force ahead on lowering prices where we can," Vachris said. Costco tends to be more resistant to economic volatilities because its customers skew more affluent and pay a fee to shop at its network of more than 800 stores. The company - known for its ever-changing assortment of mega-sized products - has been expanding its popular Kirkland brand and investing in its digital operations. Historically, it has sacrificed short-term profit margins to gain members, drive loyalty and grow business. The company's limited-assortment model and large scale also give it more flexibility on what it sells. Against the backdrop of tariffs, measures of U.S. consumer sentiment have deteriorated during most of the Trump administration on fears of an economic fallout. Spending has generally held up so far, though tariff-driven price increases are starting to hit store shelves. Many companies have signaled that they will be strategic and surgical about price increases, holding down costs of some items and discontinuing other products should they get too expensive. Overall, clothes, electronics and home goods are among the most vulnerable to levies. Costco, which reports monthly sales ahead of earnings, said its comparable sales excluding gas and currency fluctuations rose 8% during the latest quarter. E-commerce sales grew about 16% during the quarter. Traffic to website and stores also rose. Gold, toys and health and beauty items were among top sellers. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
